Friday, May 20, 2022
HomeBusinessIdea- Vodafone Plan Could Makes Government Largest Shareholder

Idea- Vodafone Plan Could Makes Government Largest Shareholder

This build the government the single largest shareholder in the telecom firm. It is expected that the Government will own around 35.8% of the total outstanding shares of the Company.

New Delhi: Vodafone Idea Telecom operator on Tuesday said that the government will hold around 35.8 per cent of the country’s third-largest wireless phone operator after its board approved the conversion of dues into equity. Vodafone Idea’s board approved the conversion of the full amount of interest related to spectrum auction instalments and dues owed to the government for use of the airwaves into equity.

This build the government the single largest shareholder in the telecom firm. It is expected that the Government will own around 35.8% of the total outstanding shares of the Company, and that the Promoter shareholders would own around 28.5% Vodafone Group and around 17.8% Aditya Birla Group, respectively, said the telco in a regulatory exchange.

Telecom operator Vodafone Idea on Tuesday said that the government will own around 35.8 percent of the country’s third-largest wireless phone operator after its board approved the conversion of dues into equity.

Here are some point cheatsheet to this story:
After the conversion of dues into equity, the government will go with the largest shareholder of Vodafone-Idea.

Promoter shareholders Vodafone Group would hold around 28.5 per cent and Aditya Birla Group around 17.8 per cent.

On the report to the company’s estimates, the value of the interest is expected to be about ₹ 16,000 crore ($2.16 billion).

Vodafone- Idea is a combination of the India unit of Britain’s Vodafone Group and Idea Cellular.

It has paid the government ₹ 7,854 crore in dues but still owes roughly ₹ 50,000 crore.

Shares of Vodafone Idea slumped 15 per cent after the telecom operator approved the conversion of spectrum
interest and government dues into equity. The stock plunged to a day low of ₹ 12.05 on BSE.

India’s telecom sector was disrupted by the entry of billionaire Mukesh Ambani’s Reliance Jio and forced some
rivals out of the market.

The sector’s troubles have also been compounded by the massive dues owed to the Centre.

Before this, Bharti Airtel had decided not to convert the interest on deferred spectrum-related payments and
government dues into equity.

RELATED ARTICLES

Leave a Reply

- Advertisment -
Google search engine

Most Popular

Recent Comments