Vodafone Idea announced on Saturday that the government will convert its outstanding spectrum auction dues into equity shares worth Rs 36,950 crore, increasing its stake in the telecom company from 22.6 percent to approximately 49 percent. However, the promoters will continue to retain operational control of the company.
In a press statement, Vodafone Idea said the Ministry of Communications had issued an order on March 29, 2025, approving the conversion in line with the September 2021 Telecom Reforms Package. The company received the order on March 30.
As part of the process, Vodafone Idea will issue 3,695 crore equity shares at a face value of Rs 10 each, within 30 days of receiving approvals from relevant authorities, including the Securities and Exchange Board of India (SEBI). The issue price was determined based on the volume-weighted average price over the last 90 trading days or the preceding 10 days before the relevant date (February 26, 2025), in compliance with the Companies Act, 2013.
Post conversion, the government will hold a nearly 49 percent stake in Vodafone Idea, while the promoters will continue to oversee the company's operations. The telecom firm stated that it will take all necessary actions to complete the equity issuance upon securing the required approvals.
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