The center will buy a large stake in Vodafone Idea, one of the country’s largest telecom companies. The company itself reported the news on Tuesday. The company’s board has given permission to Vodafone Idea to convert the company into shares to raise arrears from the market for spectrum. The company said it would take 35.6 percent of the shares.
Vodafone will hold 26.5% of the remaining shares and Idea Group will hold 16.7%. The two companies have teamed up to create Vodafone Idea.
The remaining shares will be in the hands of ordinary shareholders. The telecom company has so far been able to pay the government Rs 6,854 crore for spectrum. There is still Rs 50,000 crore in arrears. The company decides to convert the government arrears into shares.
As soon as this news came on the market, the share price of Vodafone Idea fell by 19 percent. However, the market is expected to recover somewhat after the announcement of the company on Tuesday. However, Bharti Airtel, another telecom company in the country, has decided not to convert the outstanding money for spectrum into shares.
