Vodafone Idea Share Price: There is news of relief for Vodafone Idea. Stock market regulator SEBI has approved the conversion of government dues on Vodafone Idea into equity. A total of $1.92 billion dues on Vodafone Idea will be converted into shares.
In order to provide relief to the debt-ridden telecom companies last year, the central government had approved the conversion of interest amount on the outstanding AGR into equity. It is believed that the government had taken this decision to save Vodafone Idea from drowning. SEBI has allowed the government to take stake in the company as a financial investor. SEBI has informed the Ministry of Communications about this decision.
The government has been continuously asking Vodafone Idea to raise funds with the bailout package. In view of this, the company’s board meeting is going to be held on October 21, 2022, in which it is believed that the issue of raising money by issuing convertible debentures will be discussed. So that the company can launch 5G service with its network expansion.
Vodafone Idea (Vi) has informed stock exchanges in a regulatory filing that a meeting of the Board of Directors will be held on Friday, October 21, 2022, to discuss the issue of convertible debentures converting to shares to a vendor on a private placement basis.
Vodafone Idea had an outstanding debt of Rs 1.98 lakh crore at the end of the first quarter of the current financial year. The company owes Rs 1.16 lakh crore towards spectrum payment. The company owes Rs 15,200 crore to financial institutions.