New Delhi, Mar 30 (UNI) Having failed to pay up dues, the government has asked private telecom company Vodafone Idea (Vi) to issue shares worth Rs 36,950 crore which will result in government’s stake going up to 48.99 percent from 22.60 percent now.
The promoters of Vi will, however, continue to have operational control on day-to-day operations of the telecom firm.
The total amount to be converted into equity shares is Rs 36,950 crore. The company has been directed to issue 3,695 crore equity shares of the face value of Rs 10 each at an issue price of Rs 10 each within a period of 30 days after issuance of necessary order from relevant authorities, including from Securities and Exchange Board of India, Vi said in a regulatory filing with the stock exchanges.
The pricing of shares to be allotted has been arrived basis the higher of the volume weighted price of equity shares during last 90 trading days preceding the Relevant Date or 10 days preceding the Relevant Date (the Relevant Date being February 26, 2025), subject to provision of Section 53 of the Companies Act, 2013 (that is shares cannot be issued at less than the par value).
Post the aforesaid issuance of equity shares, the Government of India shareholding in the company will increase from the existing 22.60 percent to approximately 48.99 percent. The promoters will continue to have operational control of the company.
The company will take all necessary actions to undertake the aforesaid issuance, upon receipt of the requisite approvals.
According to Vi, the Department of Telecommunications (DoT) issued an order to this effect on Saturday as per Regulation 30 of the SEBI Listing Regulations,. The DoT informed that the Ministry of Communications in line with the September 2021 Reforms and Support Package for the Telecom Sector, has decided to convert the outstanding spectrum auction dues, including deferred dues repayable after the expiry of the moratorium period, into equity shares to be issued to the Government of India under Section 62(4) of the Companies Act, 2013.
This was communicated to the company via an order dated March 29, 2025, received by the company today, that is March 30, 2025, the company said in the filing.
