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Govt may hold 33% stake in Vodafone Idea, SEBI nod awaited: Network18 Exclusive

The government will dilute its equity stake in Vodafone Idea once the company's balance sheet improves, according to CNBC-TV18 sources.

June 24, 2022 / 10:12 AM IST
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The government may hold a 33 percent stake in debt-ridden telecom operator Vodafone Idea and the process will be completed soon, a government official told CNBC-TV18 on June 24. The government will dilute its equity stake in Vodafone Idea once the company's balance sheet improves, according to CNBC-TV18 sources.

The interest payments of Vodafone Idea worth Rs 16,000 crore will be converted into government equity and the final approval from capital markets regulator Securities and Exchange Board of India (SEBI) is awaited.

Also Read: Vodafone Idea defers Rs 8,837 crore AGR dues payment, gets option to pay interest via equity

The government's Vodafone Idea stake is a part of public ownership, and not in the promoter category. CNBC-TV18 sources added that no board seat for government nominees will be done after a 33 percent equity holding in Vodafone Idea.

The government is confident of the turnaround and will play the role of silent investors in Vodafone Idea, the official told CNBC-TV18.

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Earlier, the government had approved Vodafone Idea's proposal to convert about Rs 16,000 crore interest payment dues of previous AGR moratorium into around 33 per cent stake in the company.

According to official data, telecom operators owe over Rs 1.65 lakh crore to the government in adjusted gross revenue up to financial year 2018-19. The fresh calculation shows AGR liability on Bharti Airtel was Rs 31,280 crore, Vodafone Idea Rs 59,236.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore, MTNL Rs 5,009.1 crore up to financial year 2018-19.

Vodafone Idea said in a regulatory filing to the stock exchanges that its board has approved raising of Rs 436.21 crore from Vodafone Group company Euro Pacific Securities through issue of preferential share at a unit price of Rs 10.2 apiece or warrants at the same price.
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