Government takes over major stake in Vodafone-Idea; has 35% control now

The government has approved conversion of over Rs 16,133 crore interest dues of debt-ridden Vodafone Idea into equity, the company said in a regulatory filing on Friday.

Equity shares of face value of Rs 10 each will be issued to the government at the same price.

"Ministry of Communications...passed an order today ie 3 February, 2023...directing the Company to convert the NPV of the interest related to deferment of spectrum auction instalments and AGR Dues into equity shares to be issued to the Government of India," the filing said.

The relief for the company comes as part of the reforms package announced by the government in September 2021.

"The total amount to be converted into equity shares is Rs 16133,18,48,990. The Company has been directed to issue 1613,31,84,899 equity shares of the face value of Rs 10 each at an issue price of Rs 10 each," the filing added.

Earlier, VIL had said that with conversion of dues into equity, the government will get around 35 per cent stake in the company.

Shares of VIL closed at Rs 6.89 apiece on Friday at the BSE, up by 1.03 per cent compared to previous close. The filing came after market hours