After securing board approval, Vodafone Idea Limited (Vi) has converted government dues into equity, raising the government’s stake in the company to 48.99 per cent from 22.6 per cent. The conversion involved Rs 369.5 billion in outstanding spectrum liabilities being turned into 36.95 billion equity shares at a face value of Rs 10 each, the telco disclosed in a stock exchange filing.
Following this issuance, the government now holds 48.99 per cent of the expanded paid-up share capital. Vodafone UK’s shareholding has dropped to approximately 16.1 per cent from 24.4 per cent, while the Aditya Birla Group’s stake has declined to 9.4 per cent from just over 14 per cent.
Despite the change in equity structure, Vodafone Plc and the Aditya Birla Group will retain operational control of the company. Further, the development is expected to improve Vi’s chances of securing bank loans worth Rs 250 billion for its network expansion and upgrade plans.
