The Government of India on Monday officially raised its stake in cash-strapped telco Vodafone Idea to 48.99 per cent from 22.60 per cent, after converting a part of its spectrum payment dues into equity shares worth Rs 36,950 crore.
The move is expected to reduce telco’s statutory liabilities by that amount to boost its commercial viability and help prevent an industry duopoly of Jio and Bharti Airtel.
Vi's shares were trading at Rs 7.79 apiece on the BSE, up by 6.42 per cent on Monday.
Last month ET had reported that Vi’s private sector promoters, UK’s Vodafone Plc and India’s Aditya Birla Group (ABG), will continue to have operational control, but will see sharp dilutions in shareholdings.
Vodafone UK’s stake in Vi declined to around 16.1 per cent from about 24.4 per cent before transaction, while ABG’s ownership dropped to 9.4 per cent post transaction, from a shade over the current 14 per cent.
Earlier, in February 2023, the government had converted VIL debt of about Rs 16,130 crore comprising interest arising from deferment of AGR (adjusted gross revenue) and spectrum installments.
As the telco's woes mount, so does the debt. VI's debt had increased by about 7 per cent to Rs 2.17 lakh crore in December 2024 quarter mainly on account of increase in statutory liabilities, the company said onearlier this month. It recorded total debt of Rs 2,03,400 crore in December 2023 quarter.
Before government's acquisition, Vi's debt of Rs 2.17 lakh crore comprised Rs 2,14,700 crore payment obligations towards the government and Rs 2,300 crore debt from banks and financial institutions.
The move is expected to reduce telco’s statutory liabilities by that amount to boost its commercial viability and help prevent an industry duopoly of Jio and Bharti Airtel.
Vi's shares were trading at Rs 7.79 apiece on the BSE, up by 6.42 per cent on Monday.
Last month ET had reported that Vi’s private sector promoters, UK’s Vodafone Plc and India’s Aditya Birla Group (ABG), will continue to have operational control, but will see sharp dilutions in shareholdings.
Vodafone UK’s stake in Vi declined to around 16.1 per cent from about 24.4 per cent before transaction, while ABG’s ownership dropped to 9.4 per cent post transaction, from a shade over the current 14 per cent.
Earlier, in February 2023, the government had converted VIL debt of about Rs 16,130 crore comprising interest arising from deferment of AGR (adjusted gross revenue) and spectrum installments.
As the telco's woes mount, so does the debt. VI's debt had increased by about 7 per cent to Rs 2.17 lakh crore in December 2024 quarter mainly on account of increase in statutory liabilities, the company said onearlier this month. It recorded total debt of Rs 2,03,400 crore in December 2023 quarter.
Before government's acquisition, Vi's debt of Rs 2.17 lakh crore comprised Rs 2,14,700 crore payment obligations towards the government and Rs 2,300 crore debt from banks and financial institutions.
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