The Securities and Exchange Board of India (SEBI) has reportedly approved the government’s proposal to convert Vodafone Idea Limited’s (Vi) dues worth over $1.92 billion to equity. The government’s stake in Vi, post conversion, could be more than 30 per cent, which would make it one of the largest shareholders in the company along with promoter groups – Vodafone Group Plc and Aditya Birla Group.
Besides, SEBI has approved the government’s request to classify its shareholding in Vi as public float. However, as per SEBI’s guidelines state that only stakes up to 10 per cent can be classified as public shareholding.
The operator had earlier decided to opt for converting about Rs 160 billion of interest liability payable to the government into equity which constitutes around 33 per cent stake in the company while promoters’ holding will come down from 74.99 per cent to 50 per cent.