Tag: telecom company

Shares of Vodafone Idea slumped 20 percent to Rs 12.05 on the BSE in Tuesday’s intraday trade after the telecom company’s board approved a plan to convert the full amount of interest related to spectrum auction installments and adjusted gross revenue (AGR) dues into government equity."Since the average price of the Company’s shares at the relevant date of 14.08.2021 was below par value, the equity shares will be issued to the Government at a par value of Rs 10/- per share, subject to final confirmation by the DoT. The conversion will therefore result in dilution to all the existing shareholders of the Company, including the Promoters," Vodafone Idea said. The new shareholding structure at Vodafone Idea, with the government, set to hold around a 35.8 percent stake, could turn out to be a significant breakthrough for the financially-stretched mobile operator. It leaves Vodafone with a 28.5 percent holding, while the Aditya Birla Group's stake will be at 17.8 percent. Read more

A consensus seems to have emerged in the govt and the telecom firm on the need to save the financially stressed sector. The Union government is of the view that there can be a debate on the quantum of payment and penalty but not on the fact that the companies have to make the payments. Finance Ministry were looking at many steps to bring back the sector on track and that a ‘’monopoly’’ situation was not desirable. A telecom fund to give loans to operators is among the measures being discussed.