Govt decision to convert Vodafone Idea’s interest on dues to equity to keep telco away from NCLT: Analysts

Kolkata: The government’s decision to convert Vodafone Idea’s accrued interest into equity is a lifeline of sorts and sharply reduces the risks of the telecom operator getting dragged to the bankruptcy court anytime soon, said analysts.

Shares of Vi closed 19.88% higher at Rs 8.26 on Monday on the BSE — jumping over 24% intra-day — after the government agreed last Friday to convert the telco’s Rs 16,133.18 crore accrued interest on deferred adjusted gross revenue (AGR) dues into equity at Rs 10 a share. The move had come after the government received an assurance from Vi’s promoters that they were committed to the telco and would bring in the necessary funds.