Vodafone Idea's Shares Plummet 20.88% After Board Approves 36% Share Allotment To Government

New Delhi: The share of Vodafone Idea (VI) on Tuesday witnessed a drop of 20.88 percent to close at Rs. 11.75 per share.

The shares dropped after the company's board approved to convert its Adjusted Gross Revenue (AGR) dues and spectrum interest into equity.

As a result of this move, the Government of India will now become a stakeholder of the company, picking up nearly 36 percent stake in the firm.

 "It is now informed that the Board of Directors, at its meeting held on January 10, 2022, has approved the conversion of the full amount of such interest related to spectrum auction installments and AGR Dues into equity," the telecom firm announced in a filing to Bombay Stock Exchange (BSE).

The Union Government will acquire around 35.8 percent of the total outstanding shares of Vodafone Idea following the conversion of AGR dues. On the other hand, Vodafone would hold around 28.5 percent stake in the company while Aditya Birla Group will hold around 17.8 percent stake.

The company said that the net present value of interest is expected to be around Rs 16,000 crore following final confirmation by the Department of Telecommunications.

The government will receive the equity shares at a par value of Rs.10 per share.

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