In a relief for debt-ridden Vodafone Idea, the government has approved conversion of over Rs 16,133 crore interest dues of the telecom company into equity. This was disclosed by the company in a regulatory filing on Friday, PTI reported.
Equity shares of face value of Rs 10 each will be issued to the government at the same price.
“Ministry of Communications…passed an order today ie 3 February, 2023…directing the Company to convert the NPV of the interest related to deferment of spectrum auction instalments and AGR Dues into equity shares to be issued to the Government of India,” Vodafone Idea said in the regulatory filing.
The conversion of interest dues into equity comes as part of the reforms package announced by the government in September 2021.
“The total amount to be converted into equity shares is Rs 16133,18,48,990. The Company has been directed to issue 1613,31,84,899 equity shares of the face value of Rs 10 each at an issue price of Rs 10 each,” the filing said.
Shares of VIL closed at Rs 6.89 apiece on Friday at the BSE, up by 1.03 per cent compared to previous close. The filing came after market hours.
The government decided to convert the interest dues of Vodafone Idea into equity after receiving a firm commitment from Aditya Birla Group to run the company and bring necessary investment, Telecom Minister Ashwini Vaishnaw said today.
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