INSUBCONTINENT EXCLUSIVE:
Promoter shareholders Vodafone would hold around 28.5% and Aditya Birla Group around 17.8%.New Delhi:
Telecom
operator Vodafone Idea on Tuesday said that the government will own around 35.8 per cent of the country's third-largest wireless phone
operator after its board approved the conversion of dues into equity
Voda Idea's board approved the conversion of the full amount of interest related to spectrum auction instalments and dues owed to the
government for use of the airwaves into equity
After the conversion of dues into equity, the government will become the largest shareholder of Voda Idea.Promoter shareholders
Vodafone Group would hold around 28.5 per cent and Aditya Birla Group around 17.8 per cent.According to the company's estimates, the value
of the interest is expected to be about Rs 16,000 crore ($2.16 billion).Vodafone Idea is a combination of the India unit of Britain's
Vodafone Group and Idea Cellular.It has paid the government Rs 7,854 crore in dues but still owes roughly Rs 50,000 crore.Shares of Vodafone
stock plunged to a day low of Rs 12.05 on BSE.India's telecom sector was disrupted by the entry of billionaire Mukesh Ambani's Reliance
Jio and forced some rivals out of the market.The sector's troubles have also been compounded by the massive dues owed to the Centre.Before
this, Bharti Airtel had decided not to convert the interest on deferred spectrum-related payments and government dues into equity.
