Government nod to Vodafone Idea to convert Rs 16,133 crore spectrum, AGR interest dues into equity

Government on Friday allowed Vodafone Idea to convert latter's AGR interest dues into equity, the company informed in its filing to the exchanges. In an order passed by the Ministry of Communications, the telecom company has been directed to convert the NPV of the interest related to deferment of spectrum auction instalments and AGR Dues into equity shares. The company will issue 1613,31,84,899 equity shares with a face value of Rs 10 per share to the Government of India.  to be issued to the Government of India.

 The total amount to be converted into equity shares is Rs 16,133 crore.   

"The Company will take all necessary actions forthwith to undertake the aforesaid issuance," the exchange filing said.

Vodafone Idea shares today ended at Rs 7 on the NSE and were up by Rs 0.20 or 2.94 per cent. 

Earlier, VIL had said that with conversion of dues into equity, the government will get around 35 per cent stake in the company, PTI report said.