Vodafone’s idea gains another lifeline, the government converts CR dues of Rs 36,950 to fair
Debtor Vodafone’s Idea Co., Ltd. gains another lifeline as the government decides to convert additionally ₹The equity worth Rs 3695 crore doubled its equity to nearly 49%.
The amount includes outstanding auction fees, including deferred dues due to the company after the expiration of the suspension period, the telecom operator said in an exchange filing on Sunday.
The government has directed Vodafone to issue 36.95 billion shares with a face value of ₹Each person is issued at a price of 10 ₹10 Within 30 days after issuing the necessary orders from the relevant authorities, including the Securities and Exchange Commission of India.
exist ₹10, the conversion will be held at a premium of 47% until Friday’s closing price is ₹6.81 each.
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After the company issued shares, the government’s stake in Vodafone will increase to 48.99% from the existing 22.60%. “The sponsors will continue to operate control of the company,” Vodafone’s idea said.
The second lifeline
This is the second lifeline for the government to expand to struggling operators. The government approved the conversion in February 2023 as part of the Telecommunications sector relief plan for September 2021 ₹The interest fee conceived by Vodafone is 161.33 crore. Share price according to Vodafone’s idea ₹6.81 At the end of Friday meeting, the government’s ₹Currently there is an investment value of 161.33 million ₹109.7 million, loss of 32%.
“The company has been in a dilemma and has taken a stock conversion to get it out of it,” a government official said. He added that such conversion is only within certain scopes and the company will have to pay AGR dues after the suspension.
Vodafone Creative CEO Akshaya Moondra’s additional conversion to equity after Vodafone Creative CEO Akshaya Moondra recently sought government relief. This is ahead of the four-year moratorium on adjusted gross income (AGR) and Spectrum dues suspension in September 2025.
Without relief, Vodafone’s idea will have to pay ₹After the suspension, 40 billion yuan will be paid in installments each year. Analysts say the government’s equity conversion to spectrum dues will give Vodafone a room for ideas, at least for the next 18 months.
“The conversion will help Vodafone’s idea to increase bank debt around it ₹“This can restore cash flow to future bank debt and reduce user churn,” a company executive said on anonymous condition.
