Vodafone Idea announced Tuesday that it will accept the Indian government’s proposal to convert its spectrum and adjusted gross revenue (AGR) dues to equity, making the government the largest shareholder of the company.
“Following conversion [of dues to equity], it is expected that the government will hold around 35.8% of the total outstanding shares of the company, and that the promoter shareholders would hold around 28.5% [Vodafone Group] and around 17.8% [Aditya Birla Group], respectively,” the statement said.
The net present value of the interest owed by Vodafone Idea to the government currently stands at ₹16,000 crore.
“The shares may be held through the statutory undertaking of the Unit Trust of India (SUUTI) on behalf of the Government of India or by any trustee-type or other suitable arrangement,” the company said in its statement to the exchanges.
SUUTI is a government investment arm that owns significant stakes in publicly listed companies like HDFC Bank, ICICI Bank, State Bank of India, among others.
In September, the central government had announced a four-year moratorium for telecommunication companies to repay their dues to the government.