Vodafone Idea shares tank 20.88% as board approves 36% equity allotment to government
Vodafone Idea’s share price fell 20.88% on Tuesday to close at Rs 11.75 per share after the struggling telco’s board approved the conversion of AGR dues and spectrum interest into equity. The move will see the government of India becoming a shareholder of the company, picking up nearly 36% stake in the firm. “It is now informed that the Board of Directors, at its meeting held on January 10, 2022, has approved the conversion of the full amount of such interest related to spectrum auction installments and AGR Dues into equity,” the company announced in a filing to BSE. Following the conversion of AGR dues, the Government will hold around 35.8% of the total outstanding shares of the Company, while the promoters Vodafone and Aditya Birla Group would hold around 28.5% and around 17.8% stake in the company, respectively. The net present value of interest is expected to be about Rs 16,000 crore, following final confirmation by the Department of Telecommunications, the company said. The e...