Vodafone Idea equity conversion delayed due to stock price being under par value of Rs10: Indus Towers

Kolkata: Indus Towers has said the Department of Telecommunications (DoT) can convert Vodafone Idea’s accrued interest on deferred adjusted gross revenue (AGR)-related dues into equity only after the loss-making telco’s stock price stabilises above Rs 10 as per company law provisions.

“In September 2022, the finance ministry cleared a proposal to convert Vi’s Rs 16,130 crore worth of accrued interest on deferred AGR-related dues into equity, and now DoT needs to finalise the transaction. (But) as per company law provisions, any equity infusion cannot be below par value (Rs 10), and hence the equity conversion would only be decided once the stock price stabilises above Rs 10,” Indus said in its quarterly report for the July-September period.