UK-based Vodafone Group has settled dues of approximately ₹11,650 crore (around £109 million) raised against its shares in Vodafone Idea (VIL). This update was shared in a recent regulatory filing.

To secure the debt, Vodafone Group had pledged almost its entire stake in Vodafone Idea. The pledge was made in favour of HSBC Corporate Trustee Company (UK) as a security trustee for loans raised by the group’s entities in Mauritius and India.

According to the filing, on 27 December 2024, HSBC Corporate Trustee Company released the pledged shares following the repayment of outstanding dues by Vodafone’s promoter shareholders. This repayment has effectively removed the encumbrance on over 1.57 billion equity shares held by Vodafone Promoter Shareholders, representing 22.56% of VIL’s fully diluted equity share capital.

The released shares are valued at around ₹11,649 crore, based on Vodafone Idea’s closing stock price of ₹7.41 per share as of Friday. This marks a significant financial move, as it alleviates Vodafone Group’s debt burden related to its stake in VIL.

Currently, Vodafone Group owns a 22.56% stake in Vodafone Idea, while the Aditya Birla Group holds a 14.76% stake. Meanwhile, as of 30 September 2024, the Indian government holds a 23.15% stake in the company.

This development showcases Vodafone Group’s efforts to reduce its financial liabilities and streamline its operations. It also indicates the company’s commitment to maintaining its position in India’s competitive telecom market, where VIL continues to focus on expanding its 4G and 5G networks.

The move is expected to bring stability to Vodafone Idea’s shareholding structure, boosting investor confidence, ensuring smoother operations, and aiding the company in its journey toward financial recovery and enhanced network expansion. This step highlights Vodafone’s focus on its long-term growth strategy.