Ending the long wait, the talks between Vodafone Idea and the central government over the equity conversion have come to an end.
The government ordered Vodafone Idea Ltd to issue equity shares in exchange for deferred adjusted gross revenue (AGR) and spectrum obligations totaling 16,133 crore.
With this, the Center will become the largest shareholder in the telecom joint venture involving Vodafone and the Aditya Birla Group.
The central government will have 33 percent stake in this joint venture.
The Center had brought reform measures for the telecom sector in 2021 to bring Vodafone Idea out of bankruptcy.
Markets regulator Sebi had already approved the conversion of the company’s dues into equity in October 2022.
According to the latest data published by telecom regulator TRAI, the company has 24.3 crore mobile subscribers.
Vodafone Idea is currently the only telecom operator not to place purchase orders for 5G service equipment.
The total debt of the company as on September 30, 2022 is Rs 2,20,320 crore.
