Vodafone Idea Limited (Vi) will soon have the Union Government as its main stakeholder. The government is set to complete the 33% stake in Vodafone Idea after converting the telecom operator’s accrued interest liability on deferred contributions into equity.
“The government is about to hold 33% of the capital of Vodafone Idea. The conversion of dues will be completed soon,” a government official told CNBC-TV18. % of business.
The government’s participation is part of public ownership and will not be in the developer category. There will be no board seats for government nominees after this 33% turnout. The government would like to dilute its stake in Vodafone Idea once the company’s balance sheet improves, the sources say.
The government is also convinced of a turnaround, so it will continue to play the role of silent investor.
Earlier in January, during the company’s earnings call, Vodafone Idea CEO Ravinder Takkar said that as part of the telecommunications reform package, the company had opted to convert government contributions into shares. and its proposal had been confirmed by the Department of Telecommunications (DoT).
“We have already opted for the deferral of spectrum and AGR royalties (adjusted gross revenue) as well as the conversion of interest arising from such deferral into equity. The net present value of the interest liability over the period moratorium amounting to Rs 161.3 billion for AGR dues and deferred spectrum liabilities have been confirmed with the DoT. With this, we expect the conversion sub-process to be completed in the coming weeks,” Takkar said.
In March, Vodafone Group Plc and Aditya Birla Group injected Rs 4,500 crore in equity, taking their combined stake to 74.9% from 72.05% earlier.
Watch the attached video for more details.