By Admin 
The Government of India is soon going to increase its stake in Vodafone Idea (VI) to 48.99 percent. This increase is being done under the decision to convert spectrum outstanding amount into equity share. Let us tell you, this step is part of the telecom sector relief package announced in September 2021.
Government will get 36,950 crore shares
On March 30, Vodafone Idea shared information that equity shares of 36,950 crore would be issued to the Government of India. The telecom ministry issued an order in this regard on 29 March, under which these shares will be transferred to the government under Section 62 (4) of the Companies Act, 2013.
Share transfer process will be done within 30 days
The government will get 3,695 crore equity shares at an issue price of Rs 10 per share. This issue price has been fixed on the basis of the last 90 trading days or the volume-weed average price of the last 90 trading days or 10 trading days, so that under the Section 53 of the Companies Act, the share is not issued below the minimum price.
The company will now have to complete this process within 30 days. However, it will depend on the approval of SEBI (Securities and Exchange Board of India) and other regulatory institutions.
Will the control of the company change?
After this deal, the government’s stake will increase from 22.60 percent to 48.99 percent. However, the promoters of Vodafone Idea will continue to control the company. Vodafone Idea said, “We will take all the steps required to complete this process, so that it can be implemented as soon as possible under regulatory approval.”
Growing stake and impact on telecom sector
With this decision, the government’s grip in the telecom sector of India will be stronger. This will provide financial relief to Vodafone Idea, so that it will be able to invest in 5G network and other infrastructure development. Now everyone’s eyes are on how Vodafone Idea handles this stake transfer and will it be able to give the company a new place in the market?
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