- 1613,31,84,899 (1613.31 crores) equity shares having a face value of Rs. 10 each must be issued by the company at an issue price of Rs. 10.
- With a predicted stake of roughly 33% upon the conversion, GoI will become Vodafone Idea's single-largest shareholder.
- The sum will be converted utilising section 62(4) of the Companies Act, 2013, which instructs the company to issue equity shares to the Government of India in the amount of the net present value (NPV) of the interest connected to deferring spectrum auction instalments and AGR Dues.
- Currently, Vodafone Group (United Kingdom) and Aditya Birla Group (India), the co-promoters of Vodafone Idea, hold 47.61% and 27.38%, respectively, of the business (a combined 74.99%), of the company.
- Following the conversion, the two will hold 31.8% and 18.3% of the business, respectively, bringing their combined ownership down from 74.99% to over 50%. Vodafone Idea's gross debt stood at Rs 2.20 trillion at the end of Q2 FY23.
- Vi decided to convert more than Rs 16,000 crore of interest liabilities payable to the government into equity after becoming overwhelmed by a debt load of more than Rs 2 lakh crore.
- This will equate to about a 33% ownership position in the business. The promoters' ownership will decrease from 74.99 per cent to 50 per cent.
Question:
Q.1 With a _____ stake, GoI will become Vodafone Idea's largest shareholder?
a. 20%
b. 35%
c. 38%
d. 33%
a. 20%
b. 35%
c. 38%
d. 33%
