Vi to pass on extension of interest-to-equity conversion

16 Sep 2022

Indian cellco Vodafone Idea (Vi) will not extend its planned equity conversion to include dues from its 2018 and 2019 financial years, the Economic Times writes, citing people aware of the matter. Vi is set to convert interest fees accrued from deferred spectrum and licence dues to government equity, with total interest costs of roughly INR161.3 billion (USD2.0 billion) to be exchanged for a stake of around 33% in the operator. Vi also had the option to include the conversion to government equity of the interest on Adjusted Gross Revenue (AGR)-related dues from FY18 and FY19 – payment of which it has deferred for four years – but the cellco is expected to forgo the offer, according to the sources.

India, Vi (Vodafone Idea Limited, VIL)