With Vodafone Idea (Vi) board opting for conversion of interest on dues into government equity, the government has become the single largest shareholder in the telecom firm. Government will now hold around 35.8 per cent of the total outstanding shares of the company. This will result in dilution for all the existing shareholders of the company, including the founders.

Meanwhile, Vodafone Group Plc and Aditya Birla Group will own around 28.5 per cent and 17.8 per cent in the company, respectively. In total, the promoter group will be holding 46.3 per cent.

The decision came in the backdrop of telecom relief package announced by government in September 2021, which included spectrum payment moratorium, option to convert interest on airwaves into equity, reduced bank guarantees requirement, amongst others. This rescue plan is believed to be crucial for Vi, since it has been losing customers to bigger rivals.