Vodafone Idea has got a big relief from the government. With this relief, there can be a tremendous jump in the company's shares in the coming days. In fact, 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 government is currently the largest shareholder in the debt -ridden Vodafone Idea with a 22.6 per cent stake.
Vodafone Idea Limited (VIL) reported to take additional stake from the government in the information given to the stock markets. Now with this news, the country's largest telecom company Jio and Airtel may get chilly. Both companies have paid their spectrum on time and Vodafone Idea has been given relief on this front. On behalf of both companies, he had raised his voice in this matter earlier. Let us also tell you what has been said by Vodafone Idea.
The company said that for the telecom sector the reforms declared in September 2021 and support package, the outstanding spectrum auction, including the postponed dues paid after the end of the adjournment period, has decided to convert to 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.
In the information given to the stock market, the company said that after the release of the new equity shares, 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 debt -ridden telecom company was not able to 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.
After this relief from the government, it can get a chance to invest on 5G. Also, from Tuesday, the company's shares can see a boom. According to the data, the company's shares fell 1.73 per cent to close at Rs 6.81 on Friday. During the trading session, Vodafone Idea shares came to the lower level of the day of Rs 6.77. Currently, the company's market cap has come to Rs 48,618.66.
