Govt set to become largest shareholder in Vodafone Idea: Report

  • The government is likely to convert Vi's interest liability of 16,133 crore into equities
  • This year, Vi proposed the government convert interest dues amounting to 16,000 crore for a 35.8% stake in the struggling telecom operator

Livemint
Published24 Jun 2022, 12:27 PM IST
The Centre may hold 33% around in the company and become the single largest shareholder in Vodafone Idea
The Centre may hold 33% around in the company and become the single largest shareholder in Vodafone Idea(MINT_PRINT)

The Central government is reportedly going to become the biggest shareholder of debt-ridden Vodafone Idea Limited, according to CNBT-TV18. The Centre may hold 33% around in the company and become the single largest shareholder in the third-largest telco in the country, as per the business news channel.

The government is likely to convert Vi's interest liability of 16,133 crore into equities, the report added.

The Centre may hold a stake in the company as part of public ownership instead of the promoter's category. And, the government will not have any presence on the board of the company.

Yesterday, Vodafone Idea said that the company has sought shareholders' nod to raise 436 crore from its promoter group Vodafone in an extraordinary general meeting.

Vodafone Idea (VIL) promoters - Vodafone Group and Aditya Birla Group - jointly hold a 74.99% stake in the company.

"...the consent of the members of the company be and is hereby accorded to offer, issue, and allot from time to time in one or more tranches either up to 42,76,56,421 equity shares of the face value of 10 each of the company for cash at a price of 10.20 per equity share aggregating up to 436.21 crore," VIL said in the EGM notice.

As of March 31, 2022, the total debt (including interest accrued but not due) of the group was 1,97,878.2 crore.

Earlier, Livemint reported that the government would hire a transaction adviser to help manage the conversion of interest dues related to deferred spectrum payments and adjusted gross revenue (AGR) into equity in Vodafone Idea Ltd.

The adviser, along with the finance ministry and the department of telecommunications, will determine how much the government will hold in the third-largest telecom operator.

This year, Vi proposed the government convert interest dues amounting to 16,000 crore for a 35.8% stake in the struggling telecom operator.

Vodafone Idea opted for converting its dues to stock in January, exercising an option offered by the government in September as part of a rescue package for struggling telecom operators. The package offered telcos a moratorium on the deferred spectrum and adjusted gross revenue (AGR) payments for four years and to convert the interest during the moratorium period into equity.

The conversion will reduce Vodafone Idea’s debt and dilute promoters’ stake, with parent Vodafone Group Plc and Aditya Birla Group expected to own around 28.5% and 17.8%, respectively.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
First Published:24 Jun 2022, 12:27 PM IST
HomeNewsIndiaGovt set to become largest shareholder in Vodafone Idea: Report

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel

    157.75
    03:43 PM | 19 JUL 2024
    -8.6 (-5.17%)

    Tata Power

    414.15
    03:59 PM | 19 JUL 2024
    -15.85 (-3.69%)

    Bharat Electronics

    306.30
    03:45 PM | 19 JUL 2024
    -7.2 (-2.3%)

    Zee Entertainment Enterprises

    137.55
    03:57 PM | 19 JUL 2024
    -4.9 (-3.44%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Tata Teleservices Maharashtra

    102.11
    03:59 PM | 19 JUL 2024
    4.68 (4.8%)

    Rail Vikas Nigam

    614.00
    03:59 PM | 19 JUL 2024
    27.65 (4.72%)

    Jubilant Pharmova

    752.25
    03:43 PM | 19 JUL 2024
    25.3 (3.48%)

    One 97 Communications

    458.70
    03:55 PM | 19 JUL 2024
    13.65 (3.07%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      74,925.000.00
      Chennai
      74,558.000.00
      Delhi
      75,144.000.00
      Kolkata
      74,558.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.75/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00
      OPEN IN APP
      HomeMarketsPremiumInstant LoanBudget