Vodafone Idea (VI) allots shares to the government, converting spectrum auction dues to equity. Government stake rises to 48.99% under telecom reforms. Vodafone and ABG retain control.
Summary:
Vodafone Idea (VI) allots shares to the government, converting spectrum auction dues to equity. Government stake rises to 48.99% under telecom reforms. Vodafone and ABG retain control.
VI Equity Conversion Approved
The latest development comes only weeks after VI chief executive Akshaya Moondra had appealed to Department of Telecommunications (DoT) secretary Neeraj Mittal to urgently allow equity conversion of the telco’s upcoming adjusted gross revenue (AGR) and purchase dues relating to the 2012, 2014, 2015 and 2016 spectrum auctions as the cash-strapped company braces for a spike in regulatory payouts.
Details of Share Issuance
The Business had been guided to release the equity shares of the face value of Rs 10 each at an issue price of Rs 10 each, within a duration of thirty day after issuance of essential order from appropriate authorities including from Stocks and Exchange Board of India (SEBI), the declaration stated.
The statement for this was made by the business on March 30, in line with the September 2021 Reforms and Assistance Plan for Telecommunications Industry. The telecommunications operator’s impressive spectrum auction dues, including delayed charges repayable after expiration of the halt duration, will be exchanged equity shares to be released to the Federal government of India under Section 62( 4) of the Firms Act, 2013, the company said in an exchange launch.
The current development comes just weeks after VI president Akshaya Moondra had actually interested Department of Telecommunications (DoT) assistant Neeraj Mittal to urgently allow equity conversion of the telco’s upcoming modified gross income (AGR) and acquisition dues relating to the 2012, 2014, 2015 and 2016 range public auctions as the cash-strapped company braces for a spike in regulatory payouts.
Government Stake and Control
Vodafone Concept has allotted 3,695 crore shares to the federal government for Rs 36,950 crore, raising the government’s stake to 48.99%. This relocation, component of the 2021 Telecommunications Industry Reforms, converts outstanding range auction fees right into equity. Regardless of the enhanced government risk, Vodafone Plc and Aditya Birla Team will retain operational control of the telecommunications driver.
Share Pricing
The rates of the shares that will certainly be allocated was shown up basis the higher of the quantity heavy price of equity shares during last 90 trading days coming before the pertinent day or 10 days preceding the pertinent date (the pertinent day being February 26, 2025), subject to provision of area 53 of the Business Act, 2013.
Operational Control Remains
The marketers, UK’s Vodafone Plc and India’s Aditya Birla Group (ABG), will certainly remain to have functional control of the company. VI will certainly take all required actions to carry out the issuance, upon receipt of the requisite authorizations.
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