Govt To Own 35.8% In Vodafone Idea After Converting Dues, Says Company
This will result in dilution for all the existing shareholders of the company, including the founders
Topics
Vodafone Idea | Bharti Airtel | Reliance Jio
Vi has debt obligations of more than Rs 7,000 crore maturing in Q3-Q4 FY22. In August 2021, the agency had downgraded its debentures from “BB-” to “B”.
Vodafone Idea Ltd. said the Indian government will own almost 36% in the country’s third-largest wireless phone operator after its board approved conversion of dues into equity.
This will result in dilution for all the existing shareholders of the company, including the founders, the unprofitable wireless carrier said in a stock exchange filing. Vodafone Group Plc will own around 28.5% and Aditya Birla Group will have about 17.8% in the company, it said.
This rescue plan was crucial for Vodafone Idea, a joint venture between the Vodafone Group and billionaire Kumar Mangalam Birla’s conglomerate, which has been losing customers to bigger rivals. Its financial health deteriorated after Reliance Jio Infocomm Ltd. sp
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First Published: Tue, January 11 2022. 09:06 IST
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