telco Vodafone Idea 33.44 percent stake approved by Indian government read full article Telecom VI came up with the idea;

telecommunications company Vodafone Idea - India TV Paisa
Photo: Indian TV Indebted telecom company VI had the idea

Ideas in Vodafone game: The year was 2016-17. A 4G storm called Jio had hit the market. Its growing market share day by day had broken the back of Vodafone and Idea. To save the falling credit of the telecommunications industry, both companies decided to merge and the date was chosen for March 20, 2017. Even at that time the company was in debt, but this decision breathed new life into the company again. company. After this announcement, Vi had 400 million customers, a 35% customer market share, and a 41% revenue market share. This result allowed it to become the largest telecommunications company at the time, but this position did not last long. The date changed, the time changed 5G was launched in the country, but the speed of 5G could not be seen in the development of the company. Today the condition has become such that the company has been forced to sell a large part. The board of directors of debt-plagued telecommunications company Vodafone-Idea has approved the allocation of equity shares worth Rs 16,133 crore to the government. This equates to a 33.44 percent stake in the company. The company said in a filing with the stock market on Tuesday that this stake is being given to the government in lieu of outstanding interest. This interest has been imposed on the deferred payment of Adjusted Gross Revenue (AGR) and spectrum auction.

price rate of 10 rupees per share sale government

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Rs 16,133 crore was outstanding in the company

Rs 16,133 crore in circulation in the company

Vodafone Idea said that the company’s board of directors at its meeting held on Tuesday approved the allocation of 16,133,198,899 capital shares of par value of Rs 10 each to the Department of Investment and Public Asset Management (DIPAM), Government of India, to a price of Rs 10 per share. These shares are worth Rs 16,133,184.8990. The government last week approved a proposal to convert debt-laden Vodafone Idea’s outstanding Rs 16,133 crore stake into shares. This permission has been granted after the Aditya Birla Group expressed its full commitment to lead the company and provide the necessary investments. After the share transfer, the Government of India’s stake in the company will increase to 33.44 per cent. With this, the paid up share capital of Vodafone Idea will stand at Rs 482,520,327,840. It comprises 48,252,032,784 capital shares of par value Rs 10 each.

If the first failed, the second time the share was sold.

Let us tell you, Vodafone Idea had projected that the government would get a 33.14 percent stake in the share transfer, after which the government would have the maximum stake in the company. The company’s promoters, Aditya Birla Group and Vodafone Group, have a stake of 18.07 percent and 32.29 percent, respectively. According to analysts, the conversion of Vodafone Idea’s pending stake into a government stake will prove positive for the telco in the near future. The company is also likely to increase fees. All of this will increase part of your cash flow. However, analysts say fundamental challenges remain for Vodafone Idea. However, it is worth noting that when Vodafone Idea decided to merge in 2017, it was also described as a game changer for the telecom industry and it was also said that this decision would ruin the condition of rival companies, but none of this happened. . Let us tell you that the company has invested less in 5G fiber and other basic telecom infrastructure. To close this gap, the company will require an investment of $6 to 8 billion.

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