Government Acquires Major Stake in Vodafone Idea as Spectrum Dues Convert to Equity

Vodafone Idea has allotted 3,695 crore equity shares, equivalent to Rs 36,950 crore, to the Indian government's Department of Investment and Public Asset Management (DIPAM). This move is part of the government's decision to convert the telco's spectrum dues into equity, granting the government a 48.99% stake in the company.

In a significant financial maneuver, Vodafone Idea has transferred 3,695 crore equity shares to the Department of Investment and Public Asset Management (DIPAM), valued at Rs 36,950 crore. This transaction stems from the government's strategic move to convert Vodafone's outstanding spectrum auction dues into equity.

Consequently, the government's share in the telco elevates to a substantial 48.99 per cent. This marks a pivotal shift in the company's shareholding structure, positioning the government as a major stakeholder in the expanded capital base.

The issuance aligns with the company's compliance to a previous government decision, converting deferred spectrum dues post-moratorium into equity shares. The regulatory filing confirms the increase in the company's paid-up equity share capital to Rs 10,83,43,03,50,010 through this allocation.

(With inputs from agencies.)