VodaIdea approaches banks for loans after equity conversion by govt
February 07, 2023
The banks had earlier declined to extend further credit to the struggling telco because of the delay in the equity conversion by the Centre, as per the report.
“The debt to equity conversion was one of the conditions set by the banks, so the operator will go back to the banks after the Centre takes a stake in the company,” an industry source was quoted as saying in the report.
The conversion of financially-ailing Vodafone Idea dues into government equity has been hanging fire for months.
In January 2022, the financially-stressed telco opted for an equity conversion in lieu of accrued interest on AGR-related dues that stood at ₹16,130 crore.
The conversion allows the government to obtain about 33% stake in the Vodafone Idea, making it the single-largest shareholder in the private company.
In October last year, Securities and Exchange Board of India (Sebi) also cleared the government proposal to convert dues into equity.
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