The Indian government has ordered Vodafone Idea to convert all the interest it owes to the government into equity in the firm, making it by far the largest shareholder in the troubled telecom giant.
Vodafone said it has been ordered to convert capital worth about $2 billion into equity. The company “will take all necessary actions forthwith to undertake the aforesaid issuance,” Vodafone Idea disclosed
(PDF) in a regulatory filing.
The move is the latest in the rescue attempts to save Vodafone Idea, a joint venture between the British telecom giant Vodafone Group and local billionaire Kumar Mangalam Birla’s conglomerate, which owed the Indian government about $2 billion for spectrum and other dues.
In 2021, the Indian government approved a rescue package for the debt-ridden telecom firms in the country and reserved rights to convert interest on them…
