Centre provides another lifeline to Vodafone Idea

Once VI issues shares against dues, the govt's shareholding in the company will rise to 48.99% from 22.60%

- Jatin Grover

Debt-ridden Vodafone Idea Ltd received another lifeline as the government decided to convert an additional ₹36,950 crore worth of the company's dues into equity, more than doubling its stake to nearly 49%.

The amount includes outstanding spectrum auction dues, including deferred dues otherwise payable by the company after the expiry of the moratorium period, the telecom operator said in an exchange filing on Sunday.

The government has directed Vodafone Idea to issue 3,695 crore equity shares with a face value of ₹10 each at an issue price of ₹10 each within 30 days of the issuance of necessary order from relevant authorities, including the Securities and Exchange Board of India.