• Source:JND
Add as a preferred

Vodafone-Idea Share Price: Vodafone Idea Ltd shares rose 10 per cent in early trade on Tuesday to hit the upper circuit after the government decided to convert VIL's upcoming spectrum dues into equity. Post this the union government of India will be the largest shareholder in Vodafone Idea. Earlier, the Government of India decided to convert the outstanding spectrum auction dues worth Rs 36,950 crore of Vodafone Idea (Vi) into equity shares. 

The stock closed at Rs 6.80 per share on Friday last week and opened at Rs 7.48, up 10% against the last closing price on NSE. 

The Indian government's communications ministry has taken a bold decision to convert the proceeds from the spectrum auction of Vodafone Idea Limited into equity shares, increasing the government's ownership in the telecom company to 48.99 per cent. The government said in an exchange filing that the communications ministry has decided to convert the remaining spectrum auction dues, including deferred dues, into equity shares after the moratorium imposed on the government of India under Section 62(4) of the Companies Act ends.

Rs 36,950 crore to be converted into equity

3,695 equity shares of Rs 10 each will be created from the Rs 36,950 crore, the filing said. After the issue of equity shares, the government of India's stake in the telecom operator will increase to around 48.99 per cent from the current 22.60 per cent.

According to Vodafone Idea, it has been directed to issue 3,695 crore equity shares of face value of Rs. 10 at an issue price of Rs. 10 within 30 days of the issuance of necessary orders by the relevant authorities such as the Securities and Exchange Board of India.

Earlier, Vodafone Idea stock rose by nearly 5% after the company announced the launch of 5G services in Mumbai on March 19.

This is a developing story..