New Street Research - Vodafone Idea Ltd (IDEA) Vodafone Idea (Neutral, TP: INR 10, +20%) Government to more than double their stake, approaching control. Implications for VI, Vodafone, Indus and other Indian operators

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New Street Research

Chris Hoare

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Vodafone Idea (Neutral, TP: INR 10, +20%) Government to more than double their stake, approaching control. Implications for VI, Vodafone, Indus and other Indian operators

Over the weekend, Vodafone Idea announced that the government will more than double their equity stake to 48.99% from 22.6% through the conversion of INR 369.5bn (US$ 4.3bn) in spectrum dues. As of this writing, the stock spiked up by 19% today. Further to what we had previously written on the nationalisation of Vodafone Idea, we lay out our initial thoughts below.

01/04/2025 1 EN

Underlying

Vodafone Idea Ltd

Idea Cellular provides Global System for Mobile Communications (GSM) based mobile services and related telephony services to individuals and businesses in India. The company operates through three segments: Mobility Services, which provides GSM based mobile and related telephony services; International Long Distance (ILD), which provides international long distance services; and Passive Infrastructure, which provides passive infrastructure services. Co. offers 2G and 3G services that comprise roaming arrangements; ILD and other services; and a range of mobile broadband devices, including dongles and 3G smartphones that provide 3G applications and data services.

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INE669E01016 National Stock Exchange of India India

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New Street Research

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Chris Hoare

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Vodafone Idea (Neutral, TP: INR 10, +20%) Government to more than double their stake, approaching control. Implications for VI, Vodafone, Indus and other Indian operators

Indian Telcos Q3 FY25 review: Sustained margin expansion from July’s price increase

Indian Telcos & Towers News reports that the Indian government may voluntarily give telcos $12bn of relief on AGR liabilities would be a thesis-changing event. If it happens it would be probably the biggest ever positive regulatory decisio

Tesla 1Q25 Deliveries: First quarter likely a trough; multiple drivers of sequential growth beyond

Amazon (AMZN, Buy, $290 target) AGI Strategy Coming into Focus

Global EM Telcos & Towers – On Fire - NSR GEM Top-10 April 25 Update. IHS target to $7.7.

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