The government will hire an advisor to manage the conversion of interest dues related to deferred spectrum payments and adjusted gross revenue (AGR) into equity in Vodafone Idea, according to a report in Mint.
The advisor will work with the finance ministry and the Department of Telecommunications (DoT) to determine the stake that the government should have in the telco, the report said citing a senior government official.
Vodafone Idea, which has opted for converting its dues to stock last month, has proposed the government convert interest dues amounting to Rs 16,000 crore for a 35.8% stake in the telco.
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The advisor will be chosen from firms empanelled by the Department of Investment and Public Asset Management (DIPAM), and will decide the final quantum of dues that needs to be converted, while the department will supervise the equity conversion.
The government will become the largest shareholder in the telecom operator, while parent Vodafone Group Plc and Aditya Birla Group’s stake will be diluted to around 28.5% and 17.8%, respectively if the government accepts the proposal.
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