- 38% Govt Picks Up Vodafone-Idea Shareholder, TTML Shares Fall 17%.
- The net present value (NPV) of this interest is expected to be around Rs 850 crore.
- Vodafone Group promoters will hold 28.5 percent and Aditya Birla Group will hold 17.8 percent.
The largest stake in telecom company Vodafone Idea will now be with the Government of India, not Vodafone PLC or Aditya Birla Group. The board of Vodafone Idea has given its approval to the Government of India for payment of spectrum dues instalments and conversion of the entire interest amount of the outstanding AGR (Adjusted Gross Revenue) into shares.
The government stake in the company is expected to be around 9.5 percent. The net present value (NPV) of this interest is expected to be around Rs 850 crore as per the company’s best estimates, subject to confirmation by the DoT, it said in a regulatory filing.
“The government is expected to hold approximately 9.5 per cent of the total outstanding shares of the company,” TTML said in a stock exchange filing after the market close.
Kranthi Bathini of Wealth Mills said that “There is a lot of speculation around the stock and the announcement will negatively affect the stock price. The stock was way ahead of its fundamentals,”.
After converting the outstanding amount into equity, it is believed that the government will hold 35.8 percent in the outstanding shares of the company and the promoters of Vodafone Group will have 28.5 percent and Aditya Birla Group will have 17.8 percent i.e. in the government’s telecom company Vodafone-Idea will have a majority stake.