Indian Government becomes single largest shareholder of Vodafone Idea

Daily Current Affairs / Indian Government becomes single largest shareholder of Vodafone Idea

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Category : Business and economics Published on: January 13 2022

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The Government of India will own a 36 percent stake in Vodafone Idea in a new rescue plan.
Vodafone Idea is the country's third-largest wireless phone operator.
The announced conversion will result in dilution to all the existing shareholders of the company, including the founders and promoters.
India's telecom sector was disrupted by the entry of billionaire Mukesh Ambani's Reliance Jio and forced some rivals out of the market. The sector's troubles have also been compounded by the huge dues owed to the government.
Vodafone Idea, a combination of the India unit of Britain's Vodafone Group and Idea Cellular, has paid the government 78.54 billion rupees in dues, but still owes roughly 500 billion rupees.