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Kolkata: The finance ministry will finalise the procedure of converting Vodafone Idea<\/a>’s accrued interest liabilities on deferred adjusted gross revenue (AGR) dues into government equity in compliance with Sebi rules, Devusinh Chauhan<\/a>, minister of state for communications, told Parliament Friday.

He added that the government “can sell these (Vi) shares at (an) appropriate time and thereby receive the amount due”.

“Vi has exercised its option for converting its interest liabilities into equity, (and) as per a Cabinet decision, the finance ministry shall finalise the procedure, method, rate of conversion, mix of equity and preferential capital (if any), in compliance with Sebi and other relevant guidelines,” Chauhan said in reply to a query in Rajya Sabha.

Earlier this year, Vi opted to convert interest liabilities on deferred AGR dues into government equity, and according to its calculations, the government would become the largest shareholder in the telco with a 35.8% stake.

In such a scenario, the shareholdings of Vi’s current promoters, UK’s Vodafone Group Plc and India’s Aditya Birla Group (ABG) would shrink to 28.5% and 17.8%. Vodafone UK and ABG now hold 44.39% and 27.66% stakes in Vi respectively.

The government though needs to confirm the telco’s calculations and ratify the shareholdings.

ET had reported that Vi and its promoters had recently called on the government to speed up the process of conversion of the telco’s interest liabilities on deferred AGR dues into government equity, saying it was particularly critical to the cash-strapped telco’s efforts to raise funds from external investors.

Government officials, on their part, had told ET that the process to convert Vi’s interest liabilities on deferred AGR dues into equity would take time as it entails multiple clearances. They had added that the conversion would have to run through the normal process, that includes approvals from Dipam (Department of Investment & Public Asset Management).

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Vodafone Idea stock to remain in focus ahead of its $2 bn fundraise later this week<\/a><\/h2>

While recommending institutional investors to vote in favour of the resolution pertaining to approval of preferential allotment to promoters, proxy advisory firm IiAS said the issue would lead to a dilution of 10.5%, and the equity raise gives the company funds required to meet its payment obligations as well as repay its dues and meet its working capital requirements.<\/p><\/div>

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<\/span><\/figcaption><\/figure>
Kolkata: The finance ministry will finalise the procedure of converting Vodafone Idea<\/a>’s accrued interest liabilities on deferred adjusted gross revenue (AGR) dues into government equity in compliance with Sebi rules, Devusinh Chauhan<\/a>, minister of state for communications, told Parliament Friday.

He added that the government “can sell these (Vi) shares at (an) appropriate time and thereby receive the amount due”.

“Vi has exercised its option for converting its interest liabilities into equity, (and) as per a Cabinet decision, the finance ministry shall finalise the procedure, method, rate of conversion, mix of equity and preferential capital (if any), in compliance with Sebi and other relevant guidelines,” Chauhan said in reply to a query in Rajya Sabha.

Earlier this year, Vi opted to convert interest liabilities on deferred AGR dues into government equity, and according to its calculations, the government would become the largest shareholder in the telco with a 35.8% stake.

In such a scenario, the shareholdings of Vi’s current promoters, UK’s Vodafone Group Plc and India’s Aditya Birla Group (ABG) would shrink to 28.5% and 17.8%. Vodafone UK and ABG now hold 44.39% and 27.66% stakes in Vi respectively.

The government though needs to confirm the telco’s calculations and ratify the shareholdings.

ET had reported that Vi and its promoters had recently called on the government to speed up the process of conversion of the telco’s interest liabilities on deferred AGR dues into government equity, saying it was particularly critical to the cash-strapped telco’s efforts to raise funds from external investors.

Government officials, on their part, had told ET that the process to convert Vi’s interest liabilities on deferred AGR dues into equity would take time as it entails multiple clearances. They had added that the conversion would have to run through the normal process, that includes approvals from Dipam (Department of Investment & Public Asset Management).

\"Vodafone<\/a><\/figure>

Vodafone Idea stock to remain in focus ahead of its $2 bn fundraise later this week<\/a><\/h2>

While recommending institutional investors to vote in favour of the resolution pertaining to approval of preferential allotment to promoters, proxy advisory firm IiAS said the issue would lead to a dilution of 10.5%, and the equity raise gives the company funds required to meet its payment obligations as well as repay its dues and meet its working capital requirements.<\/p><\/div>