The government has agreed to increase the stake in Vodafone Idea to 48.99 percent with a new acquisition of shares worth Rs 36,950 crore in lieu of the outstanding amount of spectrum auction. The company gave this information on Sunday. The government is currently the biggest shareholder in the Vodafone Idea, a debt -ridden with 22.6 percent stake.
Vodafone Idea Limited (VIL) reported to take additional stake from the government in the information given to the stock markets. The company said, "The reforms for the telecom sector in September 2021 and the support package in line with the support package, including the postponed dues to be repaid after the adjournment period is also included, the Ministry of Communications has decided to convert into equity shares to be issued to the Government of India. The total amount to be converted into equity shares is Rs 36,950 crore.
Vodafone Idea said that it has been directed to issue 3,695 crore equity shares with an inscribed price of Rs 10 at a issue price of Rs 10 within 30 days after the issuance of necessary orders from the Securities and Exchange Board of India (SEBI) and other authorities.
The company said in the information to the stock market, "After the new equity shares are issued, the Indian government's share in the company will increase from 22.60 percent to about 48.99 percent." Along with this, Vodafone Idea said that its promoters will have the operation control of the company. The telecom company drowned in the city could not pay the spectrum auction amount to the government. After which the company handed over 22.6 percent stake to the government in lieu of payment of arrears.
