The government has approved the conversion $The company said in a statement that 16,133 crore of Vodafone Idea’s profit has been converted into equity.
“The Ministry of Communications…has passed an order today, February 3, 2023…directing the Company to convert the NPV of interest in connection with the delay of spectrum auctions. and AGR Fees into equity shares for issue to the Government of India,” the filing said.
The bailout for the company is part of a reform package announced by the government in September 2021.
The Department of Communications, Government of India, in accordance with the previously announced Telecommunication Sector reforms and support package and the Company-implemented transition option as provided therein, has adopted an order today, i.e. February 3, 2023 pursuant to section 62(4) of the Companies Act, 2013, directing the Company to convert NPV of interest in connection with the delay of spectrum auctions and the AGR Fee into equity shares to be issued to the Government of India.
The total amount converted into equity shares is Rs. 16133,18,48,990. The Company has been directed to issue 1613,31,84,899 shares of capital with par value of Rs. 10 pieces with an issue price of Rs. 10 pieces each. The Company will take all necessary actions immediately to effect the said issuance.
VIL has chosen to convert about $16,000 crore debt interest payable to the government into equity, about 33% of the company’s shares, while promoters’ holdings will be reduced to 50% from 74.99%.
VIL has offered shares to the government with par value of $10 per share and the government is waiting for the company’s stock to stabilize at $10 pcs.
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