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Vodafone Idea shares crack nearly 19 pc

Vodafone Idea shares crack nearly 19 pc

Shares of Vodafone Idea (VIL) on Tuesday tumbled nearly 19 per cent after the debt-ridden firm announced converting about Rs 16,000 crore interest dues liability payable to the government into equity.

The stock tanked 18.85 per cent to Rs 12.05 on both the BSE and NSE.

govt to own 35.8% in vodafone idea after converting dues, says company | business standard news

VIL has decided to opt for converting about Rs 16,000 crore interest dues liability payable to the government into equity which will amount to around 35.8 per cent stake in the company, as per a regulatory filing of the telecom firm.

If the plan goes through, then the government will become the biggest shareholder in the company which is reeling under a debt burden of about Rs 1.95 lakh crore.

The government has given telecom operators an option of paying interest for the 4 years of deferment on the deferred spectrum instalments and AGR dues by way of conversion into equity of the NPV of such interest amount.

govt to own 35.8% in vodafone idea after conversion of agr dues into equity

VIL said that since the average price of the company’s shares at the relevant date of August 14, 2021 was below par value, the equity shares will be issued to the government at par value of Rs 10 per share, subject to final confirmation by the DoT.

“The conversion will therefore result in dilution to all the existing shareholders of the company, including the promoters. Following conversion, it is expected that the government will hold around 35.8 per cent of the total outstanding shares of the company, and that the promoter shareholders would hold around 28.5 per cent (Vodafone Group) and around 17.8 per cent (Aditya Birla Group), respectively,” the filing said.

See also  Punjab National Bank is all set to pick stake in NARCL.

vodafone idea may get sbi loan after india offers relief

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