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NEW DELHI: In significant relief to Vodafone Idea ( Vi ), the government has decided to convert the operator’s outstanding spectrum auction dues , including deferred dues repayable after expiry of the moratorium period, into equity shares worth Rs 36,950 crore. The move - as sought by the beleaguered telco - will take the government’s stake in Vi to around 48.99% from 22.
6% now. Vi’s promoters — UK’s Vodafone Plc and India’s Aditya Birla Group (ABG) — though, will continue to have operational control of the company. “.
..the ministry of communications, in line with the September 2021 Reforms and Support Package for the 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 under Section 62(4) of the Companies Act, 2013,” Vi said in an exchange filing Sunday evening.
Advt The company added that the government’s decision was communicated via an order, dated March 29, 2025, which received on March 30. Vi added that it had been directed by the government to issue 3,695 crore equity shares of the face value of Rs 10 each at an issue price of Rs 10 each within 30 days after issuance of necessary order from relevant authorities, including from Securities and Exchange Board of India (Sebi). The company added that pricing of the shares to be allotted had been arrived basis the higher of the volume weighted price of equity shares during last 90 trading days preceding the Relevant Date or 10 days preceding the Relevant Date (the Relevant Date being February 26, 2025), subject to provision of Section 53 of the Companies Act, 2013 (i.
e. shares cannot be issued at less than the par value). Vi said it would take “all necessary actions” to undertake the aforesaid issuance, upon receipt of the requisite approvals.
The latest development comes just weeks after Vi chief executive Akshaya Moondra had appealed to Department of Telecommunications (DoT) secretary Neeraj Mittal to urgently allow equity conversion of the telco’s upcoming adjusted gross revenue (AGR) and purchase dues relating to the 2012, 2014, 2015 and 2016 spectrum auctions as the cash-strapped company braces for a spike in regulatory payouts. Moondra, in fact, had urged DoT to approve total equity conversions amounting to Rs 36,950 crore “on an NPV (net present value) protected basis, which would boost the government shareholding in Vi to 49%. Advt ETTelecom Published On Mar 30, 2025 at 09:31 PM IST Telegram Facebook Copy Link Be the first one to comment.
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