Market regulator SEBI has approved the government’s proposal to convert dues of over $1.92 billion by telecom operator Vodafone Idea to equity. SEBI has also approved the government’s request to classify its shareholding in Vodafone Idea as public float.
One of the officials said, “SEBI (Securities and Exchange Board of India) has approved the government’s proposal to come in as a financial investor. This has been communicated to the telecom ministry.”
The government’s stake in Vodafone after the conversion could be more than 30%, which would make it one of the largest shareholders in the company along with UK’s Vodafone Group and Aditya Birla Group. SEBI’s guidelines stated that only stakes up to 10 percent can be classified as public shareholding.
Last year, the central government had approved a rescue package for debt-strapped telecom companies that allowed them to convert interest on deferred adjusted gross revenue owed to the government into equity.
