With the approval of the Centre, Vodafone Idea (Vi) was able to receive a lifeline by converting its debts related to interest on the spectrum and adjusted gross revenue (AGR) of Rs 16,133 crore into equity.
Now, 33% stake will be with the government, making it the biggest shareholder in a financially stressed telecom joint venture.
In a statement Vodafone Idea said, “Ministry of communications, in line with the reforms and support package for the telecom sector communicated earlier and the conversion option exercised by the company as provided for therein, passed an order, directing the company to convert the NPV ( Net Present Value) of the interest related to deferment of spectrum auction instalments and AGR dues into equity shares to be issued to the government of India”
The existing promoters have also agreed to put in more funding once the government comes on board.
To know more about Vodafone and Idea merger, check out : https://thelegalaffair.com/brief-analysis-on-vodafone-and-idea-merger/