New Delhi: The Vodafone Idea on Tuesday informed that the Indian government will own almost 36 per cent in the country’s third-largest wireless phone operator after its board on Monday approved the conversion of full amount of interest related to spectrum auction installments and Adjusted Gross Revenue dues into equity.
The decision came as a result in dilution for all the existing shareholders of the company, including the founders, the unprofitable wireless carrier said in a stock exchange filing.
With owning about 36 per cent of the shares of the company, the government will become the single largest shareholder in the telecom firm.
“It is expected that the Government will hold around 35.8 per cent of the total outstanding shares of the company. While Vodafone Group would hold around 28.5 per cent and Aditya Birla Group will have about 17.8 per cent in the company,” said the telco in a regulatory exchange.
As a part of the relief package in October 2021, the Department of Telecommunications had laid out various options for clearing the statutory dues, following which, the Vodafone Idea opted for deferring payment of spectrum auction installments and AGR dues by four years.
Shares of VIL were trading at Rs 12.55 apiece, down by 15.49 per cent compared to the previous, at the BSE in the morning hours.
The government holding the maximum share in the company came as rescue plan for Vodafone Idea, as the joint venture between the Vodafone Group and billionaire Kumar Mangalam Birla’s conglomerate, has been losing customers to bigger rivals.