Vodafone Idea stock down over 15% as Govt becomes largest shareholder

In a move that makes Govt the largest shareholder in Vodafone Idea the telecom company informed that the board it will convert interest on spectrum auction installments, AGR dues into equity.

In a bid to stay afloat Vodafone Idea on Tuesday informed that the board at its meeting held on Monday has approved the conversion which will result in dilution to all the existing shareholders of the company, including the promoters.

Following the conversion, the Indian government will hold about 35.8% of the total outstanding shares of the company, and the promoter shareholders Vodafone Group would hold around 28.5% and Aditya Birla Group around 17.8%.

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Vodafone Idea had paid the government $1.07 billion in AGR dues, but it still owes roughly Rs 50,000 crore and is saddled with a net debt of Rs 1.91 lakh crore.