The government will have 33 per cent stake.
There is big relief news for Vodafone Idea. In return for the interest payment of 16 thousand crores, the government will take 33 percent stake in the company. After the completion of this deal, the government will have the largest stake in the company.
Vodafone Idea’s financial position is very bad. This telecom company ,Vodafone IdeaGiving relief to ) the government has decided to take shares in the company in lieu of payment. According to the report of CNBC TV18, the company has to make an interest payment of Rs 16133 crore, which has been decided to be converted into equity. In return, the government will get 33 per cent stake in the company and will become the largest shareholder. However, it will need approval from market regulator SEBI. After getting approval from SEBI, the government will have the largest share in Vodafone Idea.
Despite the largest stake, it will not remain in the promoter category. This deal will be completed under public ownership. No representative of the Government shall be on the Board of Directors of the Company. After the improvement in the financial condition of the company, the government will gradually reduce its stake. Overall, the government will work as a silent investor.
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