Govt to convert debt into equity from Vodafone Idea
Ahead of the 5G auctions, the government will convert its debt into equity in Vodafone Idea, which will help the financially-stressed telecom operator to reach its Rs 25,000-crore fund-raising target.
Vodafone Idea will issue shares to the government on a preferential basis to be held by the department of investment and public asset management (Dipam). Post the equity conversion, the government will hold a 32% stake in Vodafone Idea and the promoters’ stake will be diluted to around 50% from the current 75%.
Ravinder Takkar, Managing Director and CEO, Vodafone Idea, said, “There could be three sets of funding – promoters, lenders and potentially third-party investors or new investors. The promoters’ money has already come in and they are the first ones to say we are comfortable. They have put in Rs 4,500 crore, so another Rs 20,000 crore is needed, which we are looking to raise from lenders and equity investors, of which Rs 10,000 crore is equity investment and Rs 10,000 crore is debt,”
The government has already informed Vodafone Idea that its holding in the company will be treated as public shareholding and not promoter’s. It will neither participate in the management nor have a board representation.
Government officials said, “Since the government’s stake will be more than 25%, it will need to seek exemption from the Securities and Exchange Board of India from making an open offer for an additional 26%.” According to SEBI norms, acquisition of 25% or more shares or voting rights triggers the need to make an open offer for a minimum of 26% of the share capital of the company.
INTERVIEWS
TOP VIDEOS
SECURITY
SOFTWARE
Al Faisal Holding Company implements Ramco Systems’ Global Payroll & HR Solution
Qatar based Al Faisal Holding announces that it has chosen to implement Ramco Systems&rsqu...
Capgemini helps Dassault Aviation accelerate its digital transformation
Dassault Aviation and Capgemini have announced the successful deployment and commissioning...
IceWarp believes SLAs if used effectively can help prevent revenue loss
IceWarp aims to strengthen its bond with its customers by advocating for a support service...
START - UP
PERIPHERALS
INDUSTRY EVENTS
Intel hosts the Safety Pioneers Conference to boost road safety in India
Intel reinforces its goal to use technology to enhance road safety in India. At the Safety...
Prama Excellence Meet conducted in Mumbai to showcase its surveillance products
Prama India has organized its third part of ‘PRAMA EXCELLENCE MEET’ event in M...
PRAMA hosts its EXCELLENCE MEET in New Delhi
Prama India has organized its Pan India Roadshows with its second event recently at New De...
Grassroots Channels announces a multicity, daylong event “Surveillance Unmasked”
Grassroots Channels has announced the launch of “Surveillance Unmasked” progra...
E- COMMERCE
