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Voda Idea to seek to convert dues into equity after moratorium ends: JP Morgan

Livemint · 10m

Vodafone Idea plans to ask the Indian government to convert the annual installment for spectrum payments due in FY26/FY27 into equity. The telecom company has recently raised ₹18,000 crore in a follow-on public offer and believes it will have enough cash to repay government dues starting in FY28. Vodafone Idea currently owes the government $24.5 billion for spectrum purchases and adjusted gross revenues. It proposes converting a portion of this debt into equity in order to ease its cash crunch. The government is already the largest shareholder in Vodafone Idea with a 24.27% stake, which could increase to 35% if the conversion is approved.