The government can hold 35.8% of the capital of Vodaphone Idea and decides to convert the contributions into shares

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Telecommunications operator Vodafone Idea is holding a meeting on Tuesday. At the meeting, it was decided that the government will own around 35.8% of the company’s capital.

The board of directors of Vodafone Idea has approved the conversion of the total amount of interest related to spectrum auction payments and contributions due to the government for the use of the airwaves into equity.

In addition to this, Idea’s board of directors has approved the conversation of all interests related to frequency auction tariffs. In addition, they authorized the fees payable to the government to use the radio waves in their participation.

According to Dot, the average value of the prize was below the face value on the relevant date of 4.08.2021. Therefore, the shares will be issued at the par value of Rs 10 / – per share to the government.

What are the key points of the Board of Directors?

The government will become the largest shareholder of Voda Idea after converting all contributions to equity.

  • The government will become the largest shareholder of Voda Idea after hedges of all contributions in equity.
  • The promoter shareholder of the Vodaphone group will be around 28.5%. In addition, Aditya Birla Group will own 17.8% of the capital of the telecommunications company.

What are the current company contributions?

Currently, the telecommunications company Vodaphone has paid Rs 7,854 crore to the government. But still, the company owes around 50,000 crore.

What is the current share of Vodaphone Idea?

After this meeting board and the approval of the conversion of the stake of Vodaphone Idea goes down. Now the current share is around 19 percent.

What has been decided by Bharat Airtel?

Last year, the second largest telecommunications player, Bharat Airtel, opted for spectrum fees as well as a four-year moratorium on AGR fees. But, earlier this month, they decided not to opt for converting interest on deferred spectrum and AGR dues.

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