Shares of Vodafone Idea (VIL) on Tuesday tumbled practically 19 per cent after the debt-ridden agency introduced changing about Rs 16,000 crore curiosity dues legal responsibility payable to the federal government into fairness.
The inventory tanked 18.85 per cent to Rs 12.05 on each the BSE and NSE.
VIL has determined to go for changing about Rs 16,000 crore curiosity dues legal responsibility payable to the federal government into fairness which is able to quantity to round 35.8 per cent stake within the firm, as per a regulatory submitting of the telecom agency.
If the plan goes by means of, then the federal government will turn into the largest shareholder within the firm which is reeling underneath a debt burden of about Rs 1.95 lakh crore.
The authorities has given telecom operators an choice of paying curiosity for the 4 years of deferment on the deferred spectrum instalments and AGR dues by the use of conversion into fairness of the NPV of such curiosity quantity.
VIL stated that for the reason that common value of the corporate’s shares on the related date of August 14, 2021 was under par worth, the fairness shares shall be issued to the federal government at par worth of Rs 10 per share, topic to closing affirmation by the DoT.
“The conversion will therefore result in dilution to all the existing shareholders of the company, including the promoters. Following conversion, it is expected that the government will hold around 35.8 per cent of the total outstanding shares of the company, and that the promoter shareholders would hold around 28.5 per cent (Vodafone Group) and around 17.8 per cent (Aditya Birla Group), respectively,” the submitting stated.