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Vodafone Idea Share Update: The largest stake in the telecom company Vodafone Idea will now be with the Government of India, not Vodafone PLC or Aditya Birla Group. The Board of Vodafone Idea gave its approval to the Government of India by deciding to convert the entire interest amount of the outstanding spectrum payment installments and the outstanding AGR (Adjusted Gross Revenue) into equity (shares) Is.
After this decision of the board of Vodafone Idea, the stake of all the shareholders in the company will decrease. After this decision, the Government of India’s stake in Vodafone Idea will be 35.8 percent. At the same time, the stake of the company’s promoter Vodafone Group (Vodafone PLC) will be around 28.5 percent and that of Aditya Birla (Aditya Birla Group) will be 17.8%.
Government stake in Vodafone Idea
Vodafone Idea has informed the stock exchanges about this decision taken in its board meeting held on Monday. The total amount of interest on spectrum and AGR dues i.e. Net Present Value (NPV) is estimated to be around Rs 16,000 crore, which is yet to be approved by the DoT. Vodafone Idea will allot shares to the Government of India at a face value of Rs 10 to the Government of India. After the approval of the Department of Telecommunications, the Government of India’s stake in Vodafone Idea will be close to 36 percent, which is more than the promoter of the company.
Help to overcome financial crisis
In fact, to get out of the financial crisis of the telecom companies, the government had given them the option of converting the interest of the outstanding amount into equity in the case of spectrum. Bharti Airtel did not accept this offer of the government but Vodafone Idea has agreed to convert the outstanding interest amount into equity. It is believed that soon due to the large stake, the government will appoint its directors in the company.
Big drop in Vodafone Idea stock
This decision of the board of Vodafone Idea will help it to avoid financial crisis. However, due to this news in the market on Tuesday morning, there was a big fall in the stock of Vodafone Idea. Shares of Vodafone Idea fell directly to Rs 12.05 a share, down 18 per cent from Rs 14.85 since Monday’s closing. Lower circuit was hit twice during trading in the stock. This fall has come due to such a large stake in the stock to the government.
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