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Government agrees to convert Vodafone Idea's interest debt into equity worth over Rs 16,000 crore

The government will be awarded equity shares with a face value of Rs 10 at the same time.

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The government will be awarded equity shares with a face value of Rs 10 at the same time.
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Vodafone Idea, which has been plagued by debt, said in a filing with regulators on Friday that it has received approval to convert approximately Rs 16,133 crore in interest dues into equity.

A similar number of equity shares, each with a face value of Rs.10, would be distributed to the government.

“Ministry of Communications…passed an order today ie 3 February, 2023…directing the Company to convert the NPV of the interest related to deferment of spectrum auction instalments and AGR Dues into equity shares to be issued to the Government of India,” the filing said.

In September 2021, the government announced reforms that would benefit the company.

“The total amount to be converted into equity shares is Rs 16133,18,48,990. The Company has been directed to issue 1613,31,84,899 equity shares of the face value of Rs 10 each at an issue price of Rs 10 each,” the filing added.

Previously, VIL had said that the government would have an interest in the firm equal to around 35% after converting their dues into equity.

Also, READ: FM Nirmala Sitharaman's big assurance on Adani Group crisis, risk to SBI and LIC

On Friday, VIL stock finished at Rs 6.89 on the BSE, a gain of 1.03 percent over the previous close. The report was submitted after markets had closed.

(With inputs from PTI)

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