Indian government clears Vi equity conversion and becomes largest shareholder

Indian government clears Vi equity conversion and becomes majority shareholder

Indian operator Vodafone Idea (Vi) has been directed by the country’s government to convert its outstanding dues on both Adjusted Gross Revenue (AGR) and deferred spectrum payments into equity.

The Times of India reports that following the conversion – worth around INR161.3 billion (USD1.95 billion) - the government will take a 33% holding in Vi to become the operator’s largest shareholder. Business Standard reported that Vi’s share value surged by over 24% following the announcement of the government’s decision.

The reforms package that has enabled Vi’s equity conversion was first announced in September 2021. However, CommsUpdate notes that a decision on Vi’s case was held up for over a year due to a number of issues, including unstable stock prices.

Ashwini Vaishnaw, Union Minister of Communications, Electronics and Information Technology and Railways, indicated that approval was granted after the government secured a commitment from the Aditya Birla Group to both manage Vi and provide required investments. Now that these conditions have been met, the conversion has been approved.

MORE ARTICLES YOU MAY BE INTERESTED IN...


Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE twice-weekly email newsletters for the latest telecom info in developing and emerging markets globally.
I agree with the Terms and conditions and the Privacy policy
By accepting occasional e-mails from our partners, inviting you to download articles, white papers and attend events, you are helping fund free access to this valuable news service for emerging markets.