Center will take 33% equity in Vodafone Idea
New Delhi:
The government will take a 33% equity stake in Vodafone Idea after converting all interest related to payments for spectrum and other fees into equity, making it the majority shareholder. in telecommunications companies.
Vodafone Idea will convert Rs 16,133 crore into equity and issue shares at Rs 10 per share, the company said in a market filing.
Vodafone Idea is a combination of the India unit of the British Vodafone Group and Idea Cellular.
India’s telecommunications sector has been disrupted by the entry of billionaire Mukesh Ambani’s Reliance Jio, forcing some competitors out of the market. The huge debts that the government has to pay have complicated the troubles of the telecommunications sector.
Vodafone Idea’s board of directors last January approved the conversion of government debt into equity. The government has deleted it now.
Vodafone Idea shares closed at Rs 6.89 today at the Bombay Stock Exchange, up 1.03% since the previous close. The application comes after market hours.
