Financial Insights

Vodafone Idea promoters urge government to speed up the equity conversion process

As per reports, the promoters of Vodafone Idea have asked the government to speed up the process of converting the interest on deferred adjusted gross revenue dues into equity while citing that it is important for the debt-ridden teleco to secure external investment.

According to the amount pending, the debt-to-equity conversion would end up giving the government a 35.8% stake in the company, making it the largest shareholder. This conversion would give the cash strapped teleco a greater chance of survival.

The company’s total gross debt as of December 31, 2021 stood at Rs 1,98,980 crore, which included deferred spectrum payment dues and AGR liability due to the department of telecom (DoT). Vi reported a net loss of Rs 7,230 crore for for the third quarter ended December 31, 2021.

The company began its fundraising process in the first week of March after the company’s Board approved a Rs 14,500 crores fundraise from its promoters- Aditya Birla Group and UK’s Vodafone Group, and external investors. The share currently trades around Rs 10.00 per share.

Highlight by Aman Agarwal.

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