Govt to become the largest Voda-Idea shareholder

Vodafone Ideas board on January 11, 2022, informes the department of telecommunication (DoT)that it will opt for converting the interest on adjusted gross revenue (AGR) and spectrum dues into government equity. Once the plan goes through a period of four years, the government will become the single largest shareholder in the company with a stake of 35.8%.

Post the equity conversion, the government will also become a creditor for the company, which would have some positives as well as negatives for Vodafone Idea. On the positive side, the company would be in a better financial position to raise external funds and there will be the possibility of flexibility in future payments to the government.

Source: Economic Times