Govt to hold 33% stake in Vodafone Idea, awaiting SEBI nod: Network18 Exclusive

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New Delhi . The government will keep 33 percent stake in the debt-ridden telecom operator Vodafone Idea with itself. This whole process will be completed soon. A government official gave this information to CNBC-TV18. According to the source, the government will reduce its equity stake in Vodafone Idea after the company’s balance sheet improves.

Vodafone Idea’s interest payment of Rs 16,000 crore will be converted into government equity. Final approval from capital markets regulator Securities and Exchange Board of India (SEBI) is awaited. Government’s stake in Vodafone Idea is a public ownership and not a promoter category.

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Sources in CNBC-TV18 said there will be no board seats for the government nominee after 33 per cent equity holding in Vodafone Idea. The government is confident about the change and will play the role of silent investors in Vodafone Idea. Not long ago, the government had approved Vodafone Idea’s proposal to convert an interest payment of about Rs 16,000 crore into about 33 per cent stake in the company.

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AGR outstanding of Rs 1.65 lakh crore with companies
According to official figures, the government owed Rs 1.65 lakh crore to the telecom operators. This is due to the Adjusted Gross Revenue for the financial year 2018-9. AGR liability on Bharti Airtel was Rs 31,280 crore, Vodafone Idea Rs 59,236.63 crore, Reliance Jio Rs 631 crore, BSNL Rs 16,224 crore, MTNL Rs 5,009.1 crore till the financial year 2018-19.

Vodafone Idea, in a regulatory filing to the stock exchanges, said that the board has approved a fund raising of Rs 436.21 crore. Today on Friday, the shares of Voda-Idea are trading at Rs 8.60.

Tags: telecom business, Vodafone, Vodafone Idea Merger

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