According to a report in ET, Aditya Birla Group's 'immediate priority' is to keep Vodafone Idea alive by quickly closing the pending fundraise.
The Aditya Birla Group (ABG) has no plans to increase its stake in its telecom Vodafone Idea (Vi) from 27.66 percent by purchasing shares from co-promoter Vodafone Group, and its top priority right now is to keep Vi alive and running, reported ET.
Under the terms of the merger between Idea and Vodafone India, owned by ABG and UK-based Vodafone Group respectively, ABG can purchase shares of Vodafone Idea from Vodafone Group at Rs 130 per share till it reaches 35.5 percent holding within the company.
However, the option of buying shares at this price will only be available to ABG up to three years from the date of the merger, August 31, 2018. After three years, the conglomerate can purchase shares at the market price under a formalised equalisation formula. Vodafone currently holds a 44.39 stake in Vodafone Idea.
"Though there is no change in the equalisation mechanism announced in March 2017, there have been no conversations at the co-promoters level around ABG buying the additional stake from Vodafone,” added the person.
Vodafone India and Idea had merged in 2018 but operated its brands separately till 2020. The entity upon merger was the largest player in the Indian telecom market in terms of mobile network subscriptions, with about 400 million customers, 35 percent customer market share and 41 percent revenue market share.