The union government now owns the majority stake in India’s third-largest telecom company, Vodafone Idea.
Vodafone Idea accepts proposal
The company announced that it will accept the government’s proposal. The proposal will convert its spectrum and adjusted gross revenue dues to equity. The implied cost of this conversion is Rs 10 a share, a 32% discount on January 10 closing price. The government will now have a 35.8% stake in the company, worth Rs 16,000 crore. The net present value of the interest owed by Vodafone Idea to the government is Rs 16,000 crore.Vodafone Idea had earlier opted for the four-year moratorium on the spectrum and AGR dues.
