Indian government to own 35.8 per cent of Vodafone Idea

Vodafone Idea has announced that its board has given approval to the Indian government’s proposal to convert the amount of spectrum auction instalment and Adjust Gross Revenue (AGR) dues to equity. This will make the government the largest shareholder in the company, with a stake of around 35.8 per cent. As a consequence, the shareholding of the Vodafone Group and the Aditya Birla group will be diluted, declining to around 28.5 per cent and 17.8 per cent respectively. With this move, the Indian government will own stakes in multiple telecom operators, placing it in a unique position in the world, with the exception of China. VI is a joint venture between British telecom group Vodafone and Aditya Birla Group’s telecom subsidiary Idea. The telecom operator has been struggling financially to keep afloat since the arrival of Reliance Jio, which undercut the competition with free call benefits and affordable data prices. Apart from the AGR dues, VI also owed New Delhi dues of approximately $6.76 billion.