Share price of Vodafone Idea plunged nearly 20 per cent on Tuesday after the company's board approved the conversion of interest on the deferred spectrum and Adjusted Gross Revenue (AGR) liabilities into equity that will make the Government of India the biggest shareholder in the country's third-largest telecom operator.
Trading in Vodafone Idea started sharply down at Rs 13.40 against the previous day's close at Rs 14.85. The company's share price plummeted to a low of Rs 12.05 in the morning trade, which is 18.85 per cent lower from its previous day's close.
The company's share price recovered later in the day. At 11.10 am at the Bombay Stock Exchange (BSE) Vodafone Idea share was trading at Rs 13, which is 12.46 per cent lower from its previous day's close.
Earlier Vodafone Idea said in a regulatory filing to the stock exchanges that the company's board at a meeting held on January 10, 2022 approved the proposal of conversion of interest on the deferred spectrum and Adjusted Gross Revenue (AGR) liabilities into equity.
The conversion will result in dilution to all the existing shareholders of the Company, including the Promoters.
Following conversion, it is expected that the Government will hold around 35.8 per cent of the total outstanding shares of the Company and that the Promoter shareholders would hold around 28.5 per cent (Vodafone Group) and around 17.8 per cent (Aditya Birla Group), respectively, Vodafone Idea said. (ANI)