(Reuters) – The Indian government will increase its stake in Vodafone Idea to approximately 48.99% by converting 369.5 billion rupees ($4.3 billion) in outstanding spectrum auction dues into equity, a regulatory filing from the company showed on Sunday.
The Ministry of Communications has directed Vodafone Idea to issue 36.95 billion shares at 10 rupees each, the filing said, boosting the government’s stake from 22.6%. The government is already the largest shareholder in the telecom company, according to LSEG data.
Vodafone Idea – formed by a merger between the Indian arm of the UK’s Vodafone Group and Aditya Birla Group’s Idea Cellular in 2018 – said its initial investors will continue to have operational control despite the increased government stake.
The move aligns with the government’s September 2021 relief package announced for the telecom sector.
In December, the company announced a plan to raise up to 19.80 billion rupees through the issue of preferential shares.
As of September 2024, the debt-saddled firm’s total debt pile stood at 2.16 trillion rupees, including deferred spectrum payment obligations it owes to the government.
The company in February reported a smaller-than-expected third-quarter loss.
($1 = 85.5340 Indian rupees)
(Reporting by Pretish M J and Nilutpal Timsina in Bengaluru; Editing by David Holmes)
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