Capital Infusion In Vodafone Idea By Centre Under Discussion: Telecom Minister Ashwini Vaishnaw

VIL has offered a stake to the government at a par value of ₹ 10 per share. (File)

Vodafone Idea (VIL), reeling under debt burden of over ₹ 2 lakh crore, has opted for converting about ₹ 16,000 crore of interest liability payable to the government into equity, which will amount to around a 33 per cent stake in the company.

Market News

Press Trust of India

Updated: January 05, 2023 3:04 pm IST

Bhubaneswar: 

Debt-ridden telecom firm Vodafone Idea has various requirements, including infusion of capital, and discussions on this front are going on, telecom minister Ashwini Vaishnaw said today.

Vodafone Idea (VIL), reeling under debt burden of over ₹ 2 lakh crore, has opted for converting about ₹ 16,000 crore of interest liability payable to the government into equity, which will amount to around a 33 per cent stake in the company while promoters’ holding will come down to 50 per cent from 74.99 per cent.

‘Vodafone (Idea) has many requirements. It has a particular requirement of capital. How much capital, who will infuse? All those things are under discussion at this point of time,” Ashwini Vaishnaw said.

VIL has offered a stake to the government at a par value of ₹ 10 per share and the government is waiting for the company’s shares to stabilise at ₹ 10 apiece.

“The responsibility of capital has to come from various sources. The company just doesn’t require conversion. It requires capital. All those things are a complex issue,” Ashwini Vaishnaw said.

Source: NDTV-Business