The government has said it will raise its ownership in Vodafone Idea to 48.99% by purchasing new shares of ₹36,950 crore for outstanding spectrum auction charges, the telecom major revealed in a regulatory filing on Sunday.
The government currently owns 22.6% in the financially troubled telecom firm, which makes it the largest individual shareholder.
"As per the September 2021 Reforms and Support Package for the Telecom Industry, the Ministry of Communications has resolved to convert outstanding spectrum auction dues, including deferred payments falling due after the moratorium period, into equity shares to be issued to the Government of India. The amount being converted into equity is ₹36,950 crore," Vodafone Idea said in its filing.
As a part of this deal, Vodafone Idea (VIL) has been directed to issue 3,695 crore equity shares of face value of ₹10 each at the same price per share. This is to be done within 30 days after approvals from concerned authorities, such as the Securities and Exchange Board of India (SEBI).
"After the release of these equity shares, the Government of India shareholding in the company will increase from the existing 22.6% to about 48.99%. But, the operational control of the company will be with the promoters," the filing further stated.
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