Vodafone Idea gains on buzz Govt to acquire stake after share stabilises

9 Sep 2022 , 10:14 AM

According to the media reports, VIL board has offered a stake to the government at a par value of Rs 10 per share. The finance ministry had cleared the proposal to acquire stake in VIL in July. VIL shares are trading below Rs 10 since 19 April 2022. Debt-ridden VIL had opted for converting government dues into equity as part of the telecom reforms package. After conversion into equities, the Union government will hold around 33% in the company while telcos promoters ? United Kingdoms Vodafone Plc and Indias Aditya Birla Group (ABG) will collectively hold around 50% in the company. Public would hold the rest of the shares in the company. VILs board in June 2022 approved the deferment of AGR-related dues by four years with immediate effect in keeping with the Department of Telecommunications (DoT) order issued on 15 June. The amount of AGR-related dues stated in the DoT letter is Rs 8,837 crore and is subject to revision on account of disposals of representations, Comptroller and Auditor General of India, Special Audit, and any other outcome of litigation. The final amount will have to be paid in six equal annual tranches post moratorium period starting from 31 March 2026. The government has given telecom operators an option of paying the interest for four years of deferment on the deferred spectrum instalments and AGR (adjusted gross revenue) dues by way of conversion into equity of the NPV of such interest amount. Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. The company provides pan India Voice and Data services across 2G, 3G and 4G platforms. The telco reported consolidated net loss of Rs 7,296.7 crore in Q1 FY23 as against net loss of Rs 6,563.1 crore in Q4 FY22 and net loss of Rs 7,319.1 crore in Q1 FY22. Revenue for the quarter was Rs 10,410.1 crore, up 1.7% QoQ. On a YoY basis, revenue growth was strong at 13.7%, highest since merger. Powered by Capital Market – Live News