New Delhi: Debt-ridden telecom operator Vodafone Idea on Tuesday said that its board has approved the allotment of equity shares worth Rs 16,133 crore to the government, which post-allocation holds a 33.44 percent stake in the company. The shares have been allocated to the government in lieu of conversion of interest dues arising from deferment of adjusted gross revenue and spectrum auction payments, the company said in a regulatory filing.
"It is hereby informed that the board of directors of the company has at its meeting held on Tuesday approved the allotment of 16,133,198,899 equity shares of face value of Rs 10 each at an issue price of Rs 10 per equity share aggregating to Rs 161,331,848,990 to the Department of Investment and Public Asset Management, Government of India," the filing said.
The government cleared conversion of Rs 16,133 crore interest dues of debt-ridden Vodafone Idea into equity after receiving a firm commitment from Aditya Birla Group to run the company and bring necessary investment.
"Post the aforesaid allotment the shareholding of the Government of India in the company stands at 33.44 percent in the expanded paid-up capital base of the company," the filing said. The paid-up share capital of the company stands increased to Rs 482,520,327,840 comprising of 48,252,032,784 equity shares of the face and paid-up value of Rs 10 each.
(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)