‘Can’t operate beyond FY26’, says Vodafone, may have to go to NCLT for insolvency

Vodafone Idea has said that it cannot operate beyond FY26 without the government’s support. This is as per a report by CNBC-TV18. The company reportedly said that if it does not get support from the government, it will go to the National Company Law Tribunal (NCLT) for insolvency.

Vodafone – Ideas owes the government Rs 1.95 lakh crore for the spectrum dues. If Vodafone-Idea goes for insolvency, the government will have no recovery of its Rs 1.18 lakh crore dues for the spectrum sales.

After the equity conversion, the government has a 49 percent stake in Vodafone-Idea.

The company has said that it has received no support from the banks despite the government’s equity conversion and Rs 26000 crore equity infusion.

Vodafone-Idea seeks relief from Supreme Court

Earlier, on Thursday, Vodafone Idea filed a fresh plea at the Supreme Court seeking further relief on its adjusted gross revenue (AGR) and spectrum dues. The company is seeking a waiver of over Rs 30,000 crore on account of penalty and interest, as per a CNBC-TV 18 report.

Vodafone Idea maintained that the government is “handicapped” in granting relief due to constraints imposed by the AGR judgment. It further claimed that the government is now effectively a ‘partner’ in the company with 49 per cent stakes after it had converted AGR and spectrum dues into equity.

According to the latest shareholding data, Foreign Portfolio Investors hold a 6.56 per cent stake, though no individual investor holds more than 1 per cent. The company has over 59 lakh small shareholders, or those with an authorised share capital of up to Rs 2 lakh.