State ownership of Vi depends on the stock revival 

Indus Towers, India’s largest mobile tower installation company, has stated in its second-quarter report that the decision to convert the government’s interest into an equity investment in Vodafone Idea (Vi) will be made after the telecom company’s stock price stabilises above Rs 10.

The conversion of Rs 16,130 crore in interest on unpaid balances of adjusted gross revenue into government equity was approved by the board of Vi in January. The government will then own about 33% of Vi as a result.

According to Indus Towers, the Department of Telecommunications (DoT) must now complete the deal after the Finance Ministry approved the proposal in September.

Since the end of April, Vi’s stock has been trading below Rs 10.

Vi’s shares on the BSE closed at Rs 8.54 on Friday.

The Indus Towers report did not elicit a quick response from Vi. However, Vi had refuted in September that a subpar share price was delaying the issuance of shares.

Vi’s ambitions for obtaining money have been hindered by the delay in the share issue. DoT has requested information about the company’s business intentions since the company has not yet finalised its 5G network contracts. In light of its plan to enter the market with three private and one state-owned telecom service provider, the government has a question.

The issuing of stock to the government is connected to the offering of optionally convertible debentures worth Rs 1,600 crore to American Tower Corporation.

The issuance of equity is a prerequisite for the issuance of debentures.