Vodafone Idea to sell entire stake in Firefly Networks for ₹4.5 crore; gets ₹2.94-crore GST order

Debt-ridden telecom operator Vodafone Idea Ltd on Monday (January 6) announced the sale of its entire 50% stake in Firefly Networks Ltd, a joint venture with Bharti Airtel Ltd, to iBUS Network and Infrastructure Private Ltd.  The transaction, valued at ₹4.5 crore, is subject to closing conditions and is expected to be completed within approximately 30 business days.

“…we hereby inform you that the company has entered into a Share Purchase Agreement with iBUS Network and Infrastructure Private Limited for the transfer of the company’s entire shareholding (i.e. 50%) in Firefly Networks Limited (“Firefly”), subject to completion of closing conditions, for a consideration of Rs 45 Million,” Vodafone Idea said in a regulatory filing.

Firefly Networks, a venture jointly owned by Vodafone Idea and Bharti Airtel, will cease to be a JV of Vodafone Idea following the stake transfer. iBUS Network and Infrastructure, the buyer, is not affiliated with Vodafone Idea’s promoter group or associated companies.

Also Read: Vodafone Idea launches new annual prepaid plans with unlimited night data and OTT bundles

GST order

In a separate filing, Vodafone Idea disclosed the receipt of an order from the Joint Commissioner, CGST & Central Excise, Patna-1, under Section 74 of the Central Goods and Services Tax Act, 2017.

The order confirms a penalty of ₹2.94 crore, along with a demand for tax and applicable interest, citing allegations of excess input tax credit availment and short payment of tax.

The company has stated that it does not agree with the order and plans to take appropriate actions to contest it. The financial impact is currently quantified as the total tax demand, interest, and penalty levied.

Shares of Vodafone Idea Ltd ended at ₹7.88, down by ₹0.39, or 4.72%, on the BSE.