wordpress blog stats
Connect with us

Hi, what are you looking for?

Government will not manage operations at Vodafone Idea despite picking up majority stake: Report

The troubled telco has chosen to swap out crores of interest accrued on dues by surrendering equity.

The Indian government intends to sell off its stake in Vodafone Idea (Vi) once the company stabilises its financial position, according to a report by Economic Times. The government will also not embark upon the route of converting the telco into a state-run company or insist upon a seat at the board of directors table. It will not dictate the direction of the company or manage its affairs despite being the largest stakeholder at 35.8 percent, the report added. Why this matters: This development gives a picture of the role that the Indian government intends to play in the third-largest telecom operator in the country after it picked up a majority stake. How did Vi evade the burden of spectrum and AGR payments? Vodafone Idea’s Board of Directors approved the conversion of the full amount of interest arising out of the company’s spectrum auction instalments and AGR (Adjusted Gross Revenue) dues into equity, according to a regulatory filing with the National Stock Exchange. The filing revealed that the Net Present Value (NPV) of the interest was around Rs.16,000 crore, according to the company's estimates. Vodafone Group will hold around 28.5 percent and the Aditya Birla Group will hold around 17.8% respectively after the conversion. What about its competitior? Bharti Airtel, like Vi, also opted for the four-year moratorium on AGR and spectrum dues last year but decided to not opt for conversion of interest into equity last week, according to Moneycontrol. One of the analysts Moneycontrol spoke to suggested that “the move hints…

Please subscribe/login to read the full story.
Written By

I cover several beats such as Crypto, Telecom, and OTT at MediaNama. I can be found loitering at my local theatre when I am off work consuming movies by the dozen.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?

News

After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples

News

In the case of the ‘deemed consent' provision in the draft data protection law, brevity comes at the cost of clarity and user protection

News

The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.

News

The provisions around grievance redressal in the Data Protection Bill "stands to be dangerously sparse and nugatory on various counts."

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ