Equity option: Vodafone Idea could become a govt entity after moratorium period, says ICICI Securities

NEW DELHI: Vodafone Idea (Vi) could become a government entity after the moratorium period of four years in case it opts to pay the interest accruing over deferred AGR and spectrum payments by way of equity, and the government could end up owning a 26% stake in the telecom company, brokerage firms said.

The government is working on a mechanism that will give Vi and other telcos the option of converting interest accruing on their dues over the four-year moratorium into equity to be owned by the Centre. This is in addition to the government having the option of converting a part of their dues into equity.