Vodafone Idea shares decline 19% as board plans to convert dues into equity

Vodafone Idea shares fell 19 per cent in early trade on Tuesday as it approved the conversion of adjusted gross revenue (AGR) and spectrum liabilities into equity.
"The board of directors, at its meeting held on January 10, 2022, has approved the conversion of the full amount of interest related to spectrum auction instalments and AGR dues into equity," Vodafone Idea said in a regulatory filing on Tuesday.

"The Net Present Value (NPV) of this interest is expected to be about Rs 16,000 crore as per the company's best estimates, subject to confirmation by the Department of Telecommunications (DoT)."

At 11.00 am, it pared some of its intraday losses and traded 12.1 per cent down at Rs 13.05 per share.

The telecom service provider's stocks have slumped around 28 per cent from its 52-week high level of Rs 16.79 it touched in December, 2021.

It further said in the filing that following the conversion, it is expected that the Centre will hold around 35.8 per cent of the total outstanding shares of the company, and that the promoter shareholders would be around 28.5 per cent (Vodafone Group) and around 17.8 per cent (Aditya Birla Group), respectively.-IANS