Vodafone Idea said in a regulatory filing that the government has approved the conversion of over Rs 16,133 crore of interest dues of Vodafone Idea into equity.
The Indian government has made a big decision regarding the debt of telecom company Vodafone Idea. The government has agreed to convert the debt of over 16,133 crore rupees into equity. This means that the government will own a part of Vodafone Idea. The company will issue equity shares, each with a face value of 10 rupees, to the government. The finance minister has stated that this should not be seen as the government taking on the debt, but rather an investment that may bring returns if the company is profitable.
Vodafone Idea has been told by the Ministry of Communications to convert the interest and AGR dues related to deferred spectrum auction payments into equity shares that will be given to the government. The total amount to be converted is 1,61,33,18,48,990 rupees and the company has been directed to issue 16,13,31,84,899 equity shares of 10 rupee face value each.
According to the latest data from the Telecom Regulatory Authority of India (TRAI), Vodafone Idea has 24.3 crore mobile customers and a market share of 21.33 percent. However, the company has not yet ordered equipment for 5G and is having difficulties paying its debts to suppliers. The telecom minister has stated that the company needs capital and discussions are ongoing regarding investment.