Govt To Own 35.8% In Vodafone Idea After Converting Dues, Says Company

Published date: .

This will result in dilution for all the existing shareholders of the company, including the founders

Topics

Vodafone Idea | Bharti Airtel | Reliance Jio

Vi has debt obligations of more than Rs 7,000 crore maturing in Q3-Q4 FY22. In August 2021, the agency had downgraded its debentures from “BB-” to “B”.

Vi has debt obligations of more than Rs 7,000 crore maturing in Q3-Q4 FY22. In August 2021, the agency had downgraded its debentures from “BB-” to “B”.

Ltd. said the Indian government will own almost 36% in the country’s third-largest wireless phone operator after its board approved conversion of dues into equity.

This will result in dilution for all the existing shareholders of the company, including the founders, the unprofitable wireless carrier said in a stock exchange filing. Vodafone Group Plc will own around 28.5% and Aditya Birla Group will have about 17.8% in the company, it said.

This rescue plan was crucial for Vodafone Idea, a joint venture between the Vodafone Group and billionaire Kumar Mangalam Birla’s conglomerate, which has been losing customers to bigger rivals. Its financial health deteriorated after Infocomm Ltd. sp

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Tue, January 11 2022. 09:06 IST