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Govt becomes single largest shareholder in Vodafone Idea with 33.44% stake
Telecom operator Vodafone Idea on Tuesday said that the company’s board of directors has approved the allotment of 16,133,184,899 equity share to the government. This approval means that the government holds 33.44 per cent of Vodafone Idea.
“Board of Directors of the Company has, at its meeting held today (i.e. on 7th February, 2023), approved the allotment of 16,133,184,899 equity shares of face value of Rs. 10/- each at an issue price of Rs. 10/- per equity share aggregating to Rs. 161,331,848,990 to the Department of Investment and Public Asset Management, Government of India (acting through President of India),” said Vodafone Idea in its regulator filing.
“Post the aforesaid allotment the shareholding of the Government of India in the Company stands at 33.44% in the expanded paid-up capital base of the Company,” it added.
The government on Friday directed Vodafone Idea Ltd to issue equity shares against interest on deferred adjusted gross revenue (AGR) and spectrum dues of ₹16,133 crore that it owes.
The equity conversion plan comes more than a year after the government made the initial decision, and serves as a breather for Vodafone Idea with a debt burden of ₹2.2 trillion as of September 2022.
Under the equity conversion plan proposed in January 2022, the government would have become Vodafone Idea’s single-largest shareholder with a 33% stake, and promoters’ holding would have reduced to 50% from almost 75%.
Vodafone Idea’s scrip ended 3.87 per cent down at ₹7.94 on BSE. Livemint
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