In a significant move within the telecommunications sector, two major Indian telecom giants have divested their stakes in a joint venture focused on network infrastructure. The sale of their combined 100% ownership to BUS Network and Infrastructure, a digital infrastructure company, marks the end of their collaboration.
Share Price Movement
The share price of Vodafone Idea Limited hit an intraday high of 2.25 percent to Rs. 8.08 per share on Tuesday, an increase from its previous close of Rs. 7.88 per share. The market capitalisation now stands at approximately Rs. 56,178 crore as of January 07, 2025.
What’s Driving Share Price?
Vodafone Idea and Bharti Airtel have signed Share Purchase Agreements with iBUS Network and Infrastructure to transfer their respective 50% stakes in Firefly Networks. Post-transfer, Firefly Networks will no longer be their joint venture.
Firefly Networks is a telecommunications company based in India that specialises in Wi-Fi infrastructure. It manages and monetises Wi-Fi hotspots, providing high-speed internet connectivity to various partner locations, including educational institutions, malls, and corporate parks.
Financial Highlights
According to its recent filing, in the quarter ending September 2024, Vodafone Idea’s consolidated revenue from operations has increased by 2.02 percent YOY from Rs. 10,716 crore in Q2 FY24 to Rs. 10,932 crore in Q2 FY25 and increased by 4.03 percent QoQ from Rs. 10,508 crore in Q4 FY24.
The company’s consolidated net loss has decreased by 17.87 percent YoY from a loss of Rs. 8,738 crore in Q2 FY24 to a loss of Rs. 7,176 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net loss has increased by 11.56 percent QoQ from a loss of Rs. 6,432 crore.
The average price-to-earnings (P/E) ratio in the telecom-service industry is 52. Vodafone Idea’s is a loss-making company so the P/E ratio can not be computed.
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Market Outlook
The Indian mobile telecommunications industry is vital to economic growth, supporting GDP, employment, and digital adoption. With 1,165 million wireless subscribers and 884 million internet users by March 2024, it shows strong potential. Urban tele-density is high, but rural areas and 4G penetration remain underdeveloped, offering growth opportunities.
The sector’s role in advancing technologies like IoT, AI, and cloud computing strengthens its economic impact. Consolidation and stable pricing since FY20 have driven recovery and promise continued growth.
Shareholding Pattern
As of the September 2024 shareholding pattern, Vodafone Idea Limited is primarily held by the promoters at 37.32 percent, foreign institutional investors hold 12.69 percent, and the public with 21.94 percent. Furthermore, the government has a 23.15% stake in the company.
About Company
Vodafone Idea Limited (Vi) is a major telecom provider in India, formed by the merger of Vodafone India and Idea Cellular on August 31, 2018. Based in Mumbai and Gandhinagar, Vi offers 2G, 3G, 4G, and soon 5G services across the country, serving over 212 million subscribers and holding a 20.7% market share as of March 2023. Despite financial challenges, Vi remains committed to expanding its infrastructure and innovating, playing a crucial role in India’s digital growth.
Written By Fazal Ul Vahab C H
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