Explained: Why Vodafone Idea shares fell nearly 19% today

Vodafone Idea shares tanked sharply in early trade on Tuesday. Shares of the telecom firm have been under pressure for the past three trading sessions. Here is all you need to know.

Vodafone Idea shares tanked as much as 19 per cent on Tuesday after the telecom company’s board approved a plan to convert the full amount of interest related to spectrum auction installments and adjusted gross revenue (AGR) dues into government equity.

In such a scenario, the government will become the single largest shareholder in the telecom firm with a stake of 35.8 per cent. According to the company’s estimates, the net present value of the interest is expected to be Rs 16,000 crore.