Govt raises stake in Vodafone Idea to 48.99% after converting Rs 36,950 AGR dues; shares rise

The Government of India on Monday officially raised its stake in cash-strapped telco Vodafone Idea to 48.99 per cent from 22.60 per cent, after converting a part of its spectrum payment dues into equity shares worth Rs 36,950 crore.

The move is expected to reduce telco’s statutory liabilities by that amount to boost its commercial viability and help prevent an industry duopoly of Jio and Bharti Airtel.

Vi's shares were trading at Rs 7.79 apiece on the BSE, up by 6.42 per cent on Monday.

Last month ET had reported that Vi’s private sector promoters, UK’s Vodafone Plc and India’s Aditya Birla Group (ABG), will continue to have operational control, but will see sharp dilutions in shareholdings.

Vodafone UK’s stake in Vi would decline to around 16.1% from about 24.4 per cent before transaction, while ABG’s ownership would drop to 9.4 per cent post transaction, from a shade over the current 14 per cent, company insiders had told ET.

(More to come)