The government has agreed to raise stake in Vodafone Idea to 48.99 per cent with fresh acquisition of shares worth ₹36,950 crore in lieu of outstanding spectrum auction dues, the company said in a regulatory filing on Sunday.
The government is the single-largest shareholder in the debt-ridden Vodafone Idea with 22.6 per cent stake.
“The Ministry of Communications… in line with the September 2021 Reforms and Support Package for Telecom Sector has decided to convert the outstanding spectrum auction dues, including deferred dues repayable after expiry of the moratorium period, into equity shares to be issued to the Government of India. The total amount to be converted into equity shares is ₹36,950 crore,” the filing said.
Vodafone Idea said it has been directed to issue 3,695 crore equity shares of the face value of ₹10 each at an issue price of ₹10 each within 30 days after issuance of necessary order from relevant authorities, including from SEBI.
“Post the aforesaid issuance of equity shares, the Government of India shareholding in the Company will increase from existing 22.60 per cent to approximately 48.99 per cent. The promoters will continue to have operational control of the company,” the filing said.