Mumbai: The Centre has asked the cash-strapped telco Vodafone Idea (Vi) to convert all interest related to payments for spectrum and other dues into equity.
The government will take 33 percent equity in the company, making it the biggest shareholder in the telecom, NDTV reported.
The total amount to be converted into equity shares is Rs 16,133.18 crore.
It is hereby informed that Ministry of Communications, Government of India has[directed] 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, said the company.
The company has been directed to issue 16.13 crore equity shares of the face value of Rs 10 each at an issue price of Rs 10 each, it said.
The total gross debt (excluding lease liabilities and including interest accrued but not due) as of September 30, 2022, stood at Rs 2,20,320 crore, comprising deferred spectrum payment obligations of Rs 1,36,650 crore (including Rs 17260 crore towards spectrum acquired in recent spectrum auction) and AGR liability of Rs 68,590 crore that is due to the Government, and debt from banks and financial institutions of Rs 15,080 crore, Moneycontrol reported.
Vodafone Ideas board in January last year had approved the conversion of dues owed to the government into equity. The government has cleared it now.
