Govt to become largest shareholder in Vi post conversion of AGR dues to equities for ₹16,133 cr - MMJC

The government has passed an order to convert adjusted gross revenue (AGR) dues of telecom services provider, Vodafone Idea into equities for nearly ₹16,133.2 crore. This conversion of AGR dues into equities is likely to make the Centre the largest shareholder in the loss-making telecom services provider.

“Though the government stake in Vodafone Idea will rise to 33 percent, which is over and above the 26 percent mark that triggers an open offer under SEBI regulations, the capital market regulator had in May 2022 itself had exempted the government from making an open offer.”

Classifying the proposed stake by the government as public shareholding, the regulator in its then order, had stated that the acquisition by the government is proposed with the sole intent of saving the larger public interest without any objective of taking control of the telecom operator.

Views shared by Partner of MMJC – Makarand Joshi – MINT

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