• Home
  • Telecom
  • Telecom News
  • Vodafone Idea Ordered to Convert Dues From Government Worth Over Rs. 16,000 Crore Into Equity

Vodafone Idea Ordered to Convert Dues From Government Worth Over Rs. 16,000 Crore Into Equity

Vodafone Idea has been directed to issue 16.13 billion shares at 10 rupees each to the government.

Vodafone Idea Ordered to Convert Dues From Government Worth Over Rs. 16,000 Crore Into Equity

VIL had said that with conversion of dues into equity, the government will get around 35 percent stake

Highlights
  • Vodafone Idea directed to issue 16.13 billion shares at 10 rupees each
  • Conversion of dues into equity was approved by capital market regulator
  • SC in 2020 gave telecom firms 10 years until 2031 to clear the dues
Advertisement

Troubled Indian mobile service provider Vodafone Idea said on Friday the government had ordered the company to convert into equity all the dues owed to the government for use of airwaves including the interest related to payments for spectrum.

The total amount to be converted into equity shares is Rs. 16,133 crore, the mobile carrier said.

The company said it has been directed to issue 16.13 billion shares at 10 rupees each. Equity shares of face value of Rs. 10 each will be issued to the government at the same price.

The conversion of Vodafone Idea dues into equity was approved by India's capital market regulator, Reuters reported in October last year.

"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," the filing said.

The relief for the company comes as part of the reforms package announced by the government in September 2021.

Earlier, VIL had said that with conversion of dues into equity, the government will get around 35 percent stake in the company.

Shares of VIL closed at Rs. 6.89 apiece on Friday at the BSE, up by 1.03 percent compared to previous close. The filing came after market hours.

In 2021, the Indian government approved a rescue package for debt-strapped telecom companies, allowing them to convert interest on deferred adjusted gross revenue owed to the government into equity.

India's telecom sector was disrupted by the entry of billionaire Mukesh Ambani's Reliance Jio that forced some rivals out of the market. The sector's troubles had also been compounded by large dues owed to the government.

The country's top court in 2020 gave telecom firms 10 years until 2031 to clear the dues. 

 


5G is now available both on Android and iPhone in India. But is it any good? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Vodafone Idea, Telecom, India, Reliance Jio
Activision Blizzard Agrees to Pay $35 Million to Settle Workforce Allegations
ChatGPT Faces Another Issue as EU Chief Suggests New AI Rules to Tackle Risks
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us
© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »