Mumbai: Shares of Vodafone Idea Ltd (Vi) surged up to 4.5 percent on Monday following reports that US-based private equity firm Tillman Global Holdings (TGH) is in advanced talks to invest USD 4–6 billion (Rs 35,000–Rs 52,800 crore) in the debt-ridden telecom operator. The potential investment could mark a major shift in ownership, with TGH likely to take operational and promoter control from Aditya Birla Group and Vodafone Plc. At 1.46 pm Share seen traded at Rs 8.85 per share up by 1.37 percent.
Investment Dependent on Government Relief Package
According to reports, the investment plan will move forward only if the Indian government extends a comprehensive relief package covering Vodafone Idea’s adjusted gross revenue (AGR) dues and spectrum payments. The proposed deal aims to ease Vi’s financial distress and enable much-needed capital infusion for its 5G rollout and network expansion.
A source quoted by The Economic Times said, 'If the deal happens, TGH will assume promoter status and take control from existing promoters.' The transaction would significantly dilute existing promoter stakes, while the government’s shareholding is expected to remain below 49 percent as part of an ongoing equity conversion process.
Currently, the government holds 48.99 percent, Aditya Birla Group owns 9.50 percent , and Vodafone Plc retains 16.07 percent of the company.
Market Reaction and Stock Performance
Following the report, Vodafone Idea’s stock climbed to an intra-day high of Rs 9.20 on the NSE, before settling around Rs 8.85, up 1.4 percent at 10:10 a.m. on November 3. The stock has risen about 15 percent so far in 2025, driven by optimism over potential fund infusions and improved liquidity outlook.
Analysts note that a large equity injection from TGH could improve Vodafone Idea’s balance sheet, though promoter dilution remains inevitable.
Deal Hinges on Government Support and Legal Context
Brokerage firm Centrum Broking highlighted that the deal’s success depends on the government’s stance on restructuring Vodafone Idea’s Rs 2 lakh crore debt burden. 'The deal currently depends on the extent of relief and support provided by the government,” the firm said, maintaining a Neutral rating on the stock.
Meanwhile, the Supreme Court recently clarified that its adjusted gross revenue (AGR) ruling applies only to Vodafone Idea and pertains to the additional AGR demand up to FY2016–17. The legal clarity has provided some short-term relief, but analysts remain cautious, citing regulatory uncertainty.
While investor sentiment has improved, the deal’s execution will rely heavily on government approval and debt restructuring clarity in the coming months.
Disclaimer: This content is for informational purposes only and does not constitute financial, investment, or legal advice. Readers should conduct their own research and consult professionals before making any investment decisions.
