Vodafone-Idea to issue equity shares to Government in lieu of AGR dues and Interest

Tags: Economics/Business

Telecom major Vodafone -Idea has decided to issue equity shares to the Government of India in lieu of the interest on its Adjusted Gross Revenue (AGR) and on spectrum installment during the four year moratorium period.

• Following the conversion of AGR dues, the Government will hold around 35.8% of the total outstanding shares of the Company, while the promoters Vodafone and Aditya Birla Group would hold around 28.5% and around 17.8% stake in the company, respectively. 
• The net present value of interest is expected to be about Rs 16,000 crore, following final confirmation by the Department of Telecommunications.
• The equity shares will be issued to the government at par value of Rs 10 per share.

For detail on the telecom AGR and other due click the below link:

Telecom sector and AGR woes