Vodafone Idea Ltd is India’s third largest telecom operator after Reliance Jio and Bharti Airtel. The company has announced that Government of India will own 35.8% stakes in the company.
The board members of Vodafone Idea Ltd have approved the decision to convert the dues into equity.
The move will dilute holdings of existing shareholders of the company.
The company had loan of Rs 1.9 lakh crore, and out of this amount it owned Rs 58,000 crore to the government as AGR dues. Rests of the liabilities are towards bank loans and spectrum related dues.
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After this decision Vodafone Group Plc will own 28.5% and Aditya Birla Group will own 17.8% in the company.
This settlement will be a big relief for the Vodafone Idea joint venture. The company has been losing a big number of customers due to poor service and stiff competition.
Shareholders are in turmoil, the shares of the company has dropped by 10% today morning.
