The government will acquire a share in the borrowers Idea of Vodafone after the company’s share price stabilizes at Rs 10 or above, an official source said.
Idea of Vodafone (VIL) the board offered a share to the government at a face value of Rs 10 per share.
“There is a SEBI norm that the acquisition should be at face value. The commerce ministry will allow the acquisition once the VIL stock stabilizes at Rs 10 or above,” an official source told PTI.
VIL shares have been trading below Rs 10 since April 19. Shares fell 1.02 percent to trade on
9.68 crore on BSE on Thursday.
The Ministry of Finance approved the proposal to acquire a stake in VIL in July.
In debt Idea of Vodafone (VIL) has decided to convert about Rs 16,000 crore of interest-bearing liabilities payable to the government into equity, which will amount to about 33 per cent stake in the company, while the promoters’ stake will come down from 74.99 per cent to 50 per cent.
The government has given telecom operators an option to pay interest for four years of deferment on deferred spectrum usage installments and AGR (adjusted gross revenue) charges by capitalizing the NPV of such interest amount.
The company’s total gross debt, excluding lease liabilities and including accrued but unpaid interest, stood at Rs 1,94,780 crore as on September 30, 2021.
The amount includes deferred spectrum liabilities of Rs 1,08,610 crore, AGR liabilities of Rs 63,400 crore due to the government and arrears from banks and financial institutions of Rs 22,770 crore as on January 11, 2022 ., when he proposed the conversion of interest-bearing liabilities into capital.
At the end of the April-June 2022 quarter, VIL’s total gross debt (excluding lease liabilities and including accrued but unpaid interest) was Rs 1,99,080 crore, including spectrum deferred liabilities of Rs 1,16,600 crore , AGR liabilities of Rs 67,270 crore owed to the government and debt from banks and financial institutions of Rs 15,200 crore.
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