According to industry sources, the government will acquire stakes in Vodafone Idea Limited (Vi) subject to the stability of its stock price at Rs 10 or above. Vi board has offered a stake to the government at a par value of Rs 10 per share. Therefore, as per the norm of Securities and Exchange Board of India (SEBI), the acquisition would take place at par value.

Meanwhile, Vi shares have been trading below Rs 10 since April 19, 2022.

Earlier, the finance ministry had cleared the proposal to acquire stake in Vi in July 2022. Besides, Vi had opted for converting about Rs 160 billion of interest liability payable to the government into equity which will amount to around 33 per cent stake in the company while promoters’ holding will come down from 74.99 per cent to 50 per cent.