Vodafone Group Plc is planning to sell its remaining 3 percent stake in the company, which is expected to generate estimated total sale proceeds of around Rs 2,700-2,800 crore. After repaying outstanding borrowings of USD 101 million, the remaining proceeds are projected to be approximately Rs 1,900-2,000 crore.

Voda Idea intends to utilize the proceeds to settle its past dues with Indus, amounting to Rs 7. This financial move is anticipated to enable the company to distribute dividends of Rs 11-12 for the second half of FY25. Looking ahead, dividends could potentially exceed Rs 20 per year in FY26 and FY27, resulting in a dividend yield of 6 percent during this period at current levels.

The funds generated from the sale of Vodafone's stake will be used as equity infusion into Voda Idea. This will help the company settle its dues and pave the way for higher dividends in the future. With the potential for dividends to exceed Rs 20 per year in FY26 and FY27, investors can expect a dividend yield of 6 percent during this period.