Indian government set to get largest stake in Vodafone Idea, here’s what you need to know

Vodafone Idea (Vi) has already paid Rs 7,854 crore to the government but the company still owes roughly Rs 50,000 crore. Here's everything you need to know.

The government of India will now have over 35.8 per cent stake in Vodafone Idea. The telecom operator has announced that its board has given approval to the Indian government’s proposal to convert the amount of spectrum auction instalment and Adjust Gross Revenue (AGR) dues to equity. This will make the government the largest shareholder in the company.

However, the move will result in the dilution of existing shareholders of Vi, which basically means that the shares of existing investors will decrease. Now, the promoter shareholders of Vodafone Group would hold around 28.5 per cent and Aditya Birla Group around 17.8 per cent, down from the current share of 44.39 per cent and 27.66 per cent, respectively.