M&A

M&A

Govt gets 33% stake in telco Vodafone Idea by converting Rs.16,133-Cr spectrum dues

Business Standard  

The union government has approved the conversion of telecom operator Vodafone Idea's dues linked to interest on the spectrum and adjusted gross revenue (AGR) worth INR 16,133 crore into equity. With this, the government will have a 33%, making it the biggest shareholder in the financially-stressed telecom joint venture between UK's Vodafone and Kumar Mangalam Birla-owned Aditya Birla Group. The company has been directed to issue 16,130 million equity shares at an issue price of INR 10. The development comes nearly 13 months after the Vi board cleared the interest conversion. Even as the government had cleared a telecom package including conversion of dues into equity in October 2021, it had recently put a condition that promoters of Vodafone Idea must infuse funds into the telco before any equity conversion could take place. The promoters have agreed to commit fresh capital into the company.