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Vodafone Idea News: The government will now have a major stake in debt-ridden Vodafone Idea. The board of directors of telecom company Vodafone Idea (Vi) has approved the allotment of equity shares (Vodafone Idea Share) worth Rs 16,133 crore to the government. Now the government will have the maximum stake of 33.44 percent in the company.
In the information given to the stock market on Tuesday, the company said that this stake is being given to the government in outstanding interest. This interest has been imposed on deferred payment of Adjusted Gross Revenue (AGR) and spectrum auction. The stake will be given to the government at Rs 10 per share.
What information was given by the company in the filing
Vodafone Idea said in a filing that the company’s board of directors, in its meeting held on Tuesday, has approved the allotment of 16,133,198,899 equity shares of face value of Rs 10 each to the Department of Investment and Public Asset Management, Government of India, at a price of Rs 10 per share.
The government approved this proposal
The government had outstanding interest of Rs 16,133 crore on Vodafone Idea. The company had proposed to convert it into equity after paying the interest. The government had approved the proposal to convert the outstanding interest into equity only last week. The company said that after the transfer of shares, the Government of India’s stake in the company would be 33.44 per cent.
Stake held by Vodafone and Aditya Birla
After increasing the government’s stake, the paid up equity capital of Vodafone Idea will be Rs 48,000 crore. This includes 48,252,032,784 equity shares of face value of Rs 10 each. Among the promoters of the company, Aditya Birla Group and Vodafone Group hold 18.07 per cent and 32.29 per cent stake, respectively.
Challenges will still remain for Vodafone Idea
Analysts say that the fundamental challenge for Vodafone Idea still remains intact. The company has invested less in fibre, 5G and other core telecom infrastructure. In this case, it needs 6 to 8 billion dollars.
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