Big news related to vodafone Idea!
The government of india is soon going to increase its stake in vodafone Idea (Vi) to 48.99 percent. This increase is being done under the decision to convert spectrum dues into equity shares. Let us tell you, this step is part of the telecom sector relief package announced in september 2021.
government will get shares worth Rs 36,950 crore
On march 30, vodafone Idea shared the information that equity shares worth Rs 36,950 crore will be issued to the government of India. The Telecom Ministry issued an order in this regard on march 29, under which these shares will be transferred to the government under Section 62(4) of the Companies Act, 2013.
Share transfer process will be done within 30 days
The government will get 3,695 crore equity shares at an issue price of Rs 10 per share. This issue price has been fixed on the basis of the volume-weighted average price of the last 90 trading days or 10 trading days, so that the issue is not made below the minimum price of the share under Section 53 of the Companies Act.
The company will now have to complete this process within 30 days. However, it will depend on the approval of SEBI (Securities and Exchange Board of India) and other regulatory institutions.
Will the control of the company change?
After this deal, the government's stake will increase from 22.60 per cent to 48.99 per cent. However, the promoters of vodafone Idea will retain control over the company. vodafone Idea said, "We will take all the steps necessary to complete this process so that it can be implemented as soon as possible under regulatory approval."
Increasing government stake and impact on telecom sector
This decision will further strengthen the government's hold in India's telecom sector. This will give vodafone Idea financial relief, which will allow it to invest in 5g networks and other infrastructure development. Now all eyes are on how vodafone Idea handles this stake transfer and will it be able to give the company a new position in the market?
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