Govt to soon become biggest shareholder of Vodafone Idea

The Union government is all set to become the biggest shareholder of Vodafone Idea Limited (Vi) soon.

The government will hold around 33 per cent in the company after converting the telco's accrued interest liability on deferred dues into equity.

According to Section 62 (4) of Companies Act, 2013, the government will convert telecom company's interest liability of Rs 16,133 crore into equities.

This move will help the debt-ridden telecom giant to reach its fund-raising target.

After conversion into equities, the Union government will hold around 33 per cent in the company while telco's promoters United Kingdom's Vodafone Plc and India's Aditya Birla Group (ABG) will collectively hold around 50 per cent in the company.

Public would hold the rest of the shares in the company. Securities and Exchange Board of India (SEBI) is yet to give its final nod, the official added.