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Vodafone Idea said on Tuesday that its board of directors has authorised the allocation of Rs. 16,133,184,899 equity shares to the government. With this decision, the government now owns 33.44 percent of Vodafone Idea.
“Board of Directors of the Company has, at its meeting held today (i.e. on 7th February, 2023), approved the allotment of 16,133,184,899 equity shares of face value of Rs. 10/- each at an issue price of Rs. 10/- per equity share aggregating to Rs. 161,331,848,990 to the Department of Investment and Public Asset Management, Government of India (acting through President of India),” said Vodafone Idea in its regulator filing.
“Post the aforesaid allotment the shareholding of the Government of India in the Company stands at 33.44% in the expanded paid-up capital base of the Company,” it added.
The government instructed Vodafone Idea Ltd on Friday to issue equity shares in exchange for interest on delayed adjusted gross revenue (AGR) and spectrum dues totaling Rs. 16,133 crore.
The stock conversion plan comes more than a year after the government made the first decision, and it provides some relief for Vodafone Idea, which has a debt load of Rs. 2.2 trillion as of September 2022.
The government would have been Vodafone Idea’s single-largest stakeholder with a 33% interest under the equity conversion plan announced in January 2022, and promoters’ stake would have been cut to 50% from over 75%.
Since this morning, the share price of Vodafone Idea has been rising. The Vodafone Idea share price today opened higher and went on to record an intraday high of Rs. 8.55 per share, representing a 25% increase over Monday morning trades.