Vodafone-Idea, on Tuesday, said its board had approved to accept the government of India’s motion to convert its spectrum and adjusted gross revenue (AGR) dues into equity shares. It will make GoI the majority shareholder in India’s third largest telecom company with 35.8% shares.
The government will receive shares at 10 rupees, 32% less value than the closing price on Monday 10th January. The shares are expected to be held through Statutory Undertaking of the Unit Trust of India (SUUTI) on the government’s behalf, by any trustee, or with other suitable arrangements.
Vodafone Idea mentioned in its fillings that the cost of Rs. 10 per share is decided according to the average share price on the 14th August 2021, which was below Rs. 10.
With this move, the shares of Vodafone Idea owners are divided as Vodafone Plc: 28.5% and Aditya Birla Group: 17.5%, the previous stakes for the owners were 44.39% and 27.66%, respectively.
According to Vodafone Idea’s exchange fillings, it owes ₹16,000 crores in Net Present Value (NAV) of the interest to GoI.
