Vi to convert interest on spectrum auction installments, AGR dues into equity

Vodafone Idea on Tuesday informed that the board at its meeting held on Monday has approved the conversion of the full amount of interest related to spectrum auction instalments and AGR Dues into equity. The conversion will therefore result in dilution to all the existing shareholders of the company, including the promoters.

Following the conversion, the Indian government will hold about 35.8% of the total outstanding shares of the company, and the promoter shareholders Vodafone Group would hold around 28.5% and Aditya Birla Group around 17.8%, the telecom operator announced in an exchange filing today.

“The Net Present Value (NPV) of this interest is expected to be about ₹16,000 crore as per the Company’s best estimates, subject to confirmation by the DoT. Since the average price of the company’s shares at the relevant date of 14.08.2021 was below par value, the equity shares will be issued to the government at par value of Rs. 10/- per share, subject to final confirmation by the DoT,” the statement added.

Earlier this month, telecom major Bharti Airtel had informed that it will not avail the option of conversion of the interest on deferred spectrum and AGR dues into equity, under the reforms package. Livemint