Centre To Hold 33% Stake In Vodafone Idea, Asks Telco To Convert All Dues Into Equity

Centre on Friday debt-ridden telco Vodafone Idea Limited (VIL) to convert the NPV of the interest related to deferment of spectrum auction instalments and AGR Dues into equity shares. These shares will be issued to the Government of India (GoI).

The total amount to be converted into equity shares is worth Rs 16,133 crore. The company has been directed to issue 1613 crore equity shares at the face value of Rs 10 each at an issue price of Rs 10 each. 

This will mean that the GoI will now hold roughly 33 per cent stake in the telco.

Vodafone Idea's board had approved the conversion of dues owed to the government into equity in January last year. The clearance on the same came from the government after a long wait.

In a statement, Telecom Minister Ashwini Vaishnaw said, “We had sought a firm commitment that the Aditya Birla Group would run the company and bring necessary investments. The Birlas have agreed and hence we have agreed to convert. We want India to be a three-player market plus BSNL and ensure healthy competition for consumers.”

At the closing bell on Friday, Vodafone Idea shares were trading at Rs 7 apiece on the BSE.