Relief for Vodafone Idea, government allows conversion of remaining Rs 16,133 crore into equity

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Vodafone Idea: A relief news has come for Vodafone Idea, the country’s third largest telecom network company, which is going through financial problems. The government has allowed the company to convert the amount of interest made on their remaining AGR into equity shares. If you do not know, then tell that Vodafone Idea owes Rs 16,133 to the government in lieu of interest money. After getting permission from the government, Vodafone Idea is going to issue 1,633 crore shares of Rs 10 each. At the same time, after converting this outstanding loan into equity share, the government’s stake in Vodafone Idea will be close to 35 percent.

Approval to convert interest dues into equity

The government has approved the conversion of debt-ridden Vodafone Idea’s interest dues of over Rs 16,133 crore into equity. The company gave this information to the stock market today. Equity shares of face value of Rs 10 will be issued to the government at this price.

Vodafone Idea Limited told the stock market

Vodafone Idea Limited (VIL) told the stock market – Ministry of Communications … passed an order today i.e. February 03, 2023 … directed the company to pay interest and AGR dues related to deferment of spectrum auction installments into equity shares, which will be issued to the Government of India.

Relief under the announced reform package

The company got this relief under the reform package announced by the government in September 2021. The company said- the total amount to be converted into equity shares is Rs 16,133,18,48,990. The company has been instructed to issue 1613,31,84,899 Equity Shares of face value of Rs.10 each. Their issue price is also Rs 10. VIL had earlier said that by converting the dues into equity, the government would get around 35 per cent stake in the company. (with language input)

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