Vodafone Idea Share Update: The government is going to raise stake in Vodafone Idea, a telecom company that is burdened with heavy debt. But the government will take a stake in the company only when the share price of the company is stable above Rs 10. Vodafone Idea shares closed at Rs 9.70, down 0.51 per cent at the close of trading on Thursday. Vodafone Idea has offered to take a stake to the government at a share price of Rs 10.
SEBI rules say that the company to be acquired should be acquired on the basis of the value of the share. The central government will take a stake in the company after getting approval for acquisition from the Department of Telecommunications after the Vodafone Idea share stabilizes above Rs 10. Approval has been received from the Finance Ministry to take stake in Vodafone Idea.
About Rs 16000 crore interest is made on the amount owed to the government on Vodafone Idea, the company has decided to convert it into shares. After converting this dues into debt, the government will have 33 percent stake in Vodafone Idea. With this, the promoter’s stake in the company will also come down from 74.99 per cent to 50 per cent.
In the relief package given to telecom companies last year, the government had given the option to pay the spectrum installment and interest on AGR dues in four years. The government had said that the interest that will be generated can also be converted into shares by the company. Vodafone Idea had a total debt outstanding of Rs 1,99,080 lakh crore in the April-June quarter.