Vodafone Idea to go ahead with equity allotment to the Indian government
Recently collaborated telecom companies, Vodafone Idea private limited has announced that it will be giving 35.8 percent equity of the government of India. On Monday, the board of directors of the PVT LTD took the final call regarding this.
On January 10, the top leadership of the telcom venture decided to approve the full amount of interest related to the spectrum auction, as previously decided, along with AGR due to the Indian government. With this, the government has now become 35.8% owner of the company.
The decision has only been taken in coordination with the Department of Telecommunications (DoT) for settlement of dues. While filing with the stock exchange, the net percent value is expected to go about ₹16,000 crore as per the company’s best estimates.
Even though this value has not yet been confirmed by the DoT, there is a huge chance that the experts are adamant on the value nearing this total.
The statement also clarified that it is because the average price for the company shares stands below par value as per the consideration date of 14.08.2021, the equity shares will be issued to the government at par value of Rs 10 per share.
The company also stressed that the conversion will now result in dilution to all the present shareholders of the company and that will be including the promoters. It said that of all the outstanding shares of the company, ‘it is expected that the government will hold around 35.8% shares’. Apart from this, the board has also decided to take a note on the proposed changes of the existing SHA and in connection to this, it also suggested executing the same with the recommended changes in the Articles of Association (AoA).