Debt-ridden telecom company Vodafone Idea said its board has approved the allotment of equity shares worth Rs 16,133 crore to the government. After the conversion, the government will own 1,613 crore shares for Rs 10 each in the firm, which roughly translates into 33.44 percent stake.
The shares have been allocated to the government in lieu of conversion of interest dues arising from deferment of adjusted gross revenue and spectrum auction payments, the telco said in a regulatory filing.
The government cleared conversion of Rs 16,133 crore interest dues of Vodafone Idea into equity after receiving a firm commitment from Aditya Birla Group to run the company and bring necessary investment.
The move by the government, which comes after a wait of about a year, will make it the largest shareholder in the company. This also bestows confidence in the company’s sustainability. There are also reports that suggest promoters may infuse more money in the company now.
"Post the aforesaid allotment the shareholding of the Government of India in the company stands at 33.44 per cent in the expanded paid-up capital base of the company," the filing said.
The paid-up share capital of the company stands increased to Rs 482,520,327,840 comprising of 48,252,032,784 equity shares of the face and paid-up value of Rs. 10/- each.
Meanwhile, shares of Vodafone Idea on February 7 closed 3.87 percent lower at Rs 7.94 apiece on BSE.
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