Govt to soon become a shareholder in Vodafone Idea and Tata Teleservices
By MYBRANDBOOK
The government is set to own 35.8 percent in Vodafone Idea and 9.5 percent in Tata Teleservices after the two telecom operators decided to offer equity stake against their dues related to spectrum auction installments and AGR payments.
This conversion will result in massive equity dilution for all Vodafone Idea shareholders with the government becoming the largest shareholder. The government said that this doesn’t mean that it will take control of the companies and run them on a day-to-day basis.
It is also being said that the shares will be held through a statutory undertaking of the UTI on behalf of the government and the government will have the choice to convert the equity shares into preference shares at any point in time.
Tata Teleservices, which primarily offers fixed-line broadband services in Maharashtra, said it has decided to exercise both the options and the Net Present Value (NPV) of the interest payable is expected to be Rs 850 crore. In the case of Vodafone Idea, the NPV of the interest payable is expected to be about Rs 16,000 crore for which the operator has offered 35.8 per cent stake to the government.
Some analysts said that the entry of the government as the largest shareholder and the assurance of sovereign backing will be a positive for Vodafone Idea as it goes about raising funds from investors in India and abroad. However, analysts also say that it will be a tall task for Vodafone Idea to stage a comeback being on a massive debt of around Rs 1.8 lakh crore.
The government of India intends to construct a single portal f
A single portal will be launched by the Indian government to list all of it...
OpenAI offers GPT-4o, a faster model available to all users at
GPT-4o, a faster and more sophisticated AI model, is made available to all...
Paytm brings UPI Lite Wallet for low-value transactions
Paytm’s parent company One97 Communications (OCL) is emphasizing upon UP...
BHIM to join e-commerce, competing with PhonePe and Google Pay
The government-supported payment software BHIM is getting ready to join t...
LENOVO GROUP LTD.
TP-LINK INDIA PVT LTD.
VVDN TECHNOLOGIES
AGGRESSIVE ELECTRONICS MANUFACTURING SERVICES PVT. LTD.
Technology Icons Of India 2023: Alok Ohrie
Alok plays a critical role in the Government of India’s Atal Innovat...
Technology Icons Of India 2023: Som Satsangi
With more than three decades in the IT Sector, Som is responsible for ...
Technology Icons Of India 2023: Ashish Kumar Chauhan
Ashish works as the CEO of the National Stock Exchange (NSE). He is al...
INDIANOIL helps reach precious petroleum fuels to every nook and corner of the country
IndianOil, a diversified, integrated energy major with presence in alm...
GSTN aims to integrate indirect tax ecosystem on a shared IT infrastructure
Goods and Services Tax Network (GSTN) has built Indirect Taxation plat...
CSCs enabling rural India digitally empowered
Common service centres (CSCs) are digital access points under the Digi...
EXCLUSIVE NETWORKS SALES INDIA PVT. LTD.
Exclusive Networks is a globally trusted cybersecurity specialist hel...
M. TECH SOLUTIONS (I) PVT. LTD.
M.Tech is a leading cyber security and network performance solutions ...
FORTUNE MARKETING PVT. LTD.
Delhi based Fortune Marketing, An ISO 9001:2008 company, distributes ...