The board had held a meeting on Monday and approved the conversion of the full amount of such interest related to spectrum auction installments and adjusted gross revenue (AGR) dues into equity.
Shares of Vi slumped by 14.81% to Rs 12.65 on early trading hours.
“…it is expected that the Government will hold around 35.8% of the total outstanding shares of the Company, and that the Promoter shareholders would hold around 28.5% (Vodafone Group) and around 17.8% (Aditya Birla Group), respectively,” said the telco in a regulatory exchange on Tuesday morning.
“The Net Present Value (NPV) of this interest is expected to be about Rs.16,000 crore as per the Company’s best estimates, subject to confirmation by the DoT,” said the telco.
Since the average price of the Company’s shares at the relevant date of 14.08.2021 was below par value, the equity shares will be issued to the Government at par value of Rs. 10/- per share, subject to final confirmation by the DoT.
These decisions come on the back of telecom relief package announced by the government in September which included spectrum payment moratorium, option to convert interest on airwaves into equity, reduced bank guarantees amongst others.
The latest decision from Vi also raises questions on its fund raising plans. Vi has been in discussions with global investors to raise Rs 25,000 crore for almost two years now but after the relief measures were announced, the company was expected to redraw its fund raising needs.