Shares of Vodafone Idea Ltd jumped nearly 25% on Monday after the Indian government allowed the carrier to convert the $2 billion interest on dues owed to the sovereign into equity, which could free up some cash flows in the near term.
A man walks across the LED display board showing the logo of Vodafone-Idea at the ongoing India Mobile Congress 2022, at Pragati Maidan, in New Delhi, India, October 3, 2022. REUTERS/Anushree Fadnavis/Filesjumped nearly 25% on Monday after the Indian government allowed the carrier to convert the $2 billion interest on dues owed to the sovereign into equity, which could free up some cash flows in the near term.
India had in 2021 approved a bailout package for the debt-strapped telecom companies, allowing them to convert interest on deferred adjusted gross revenue owed to the government into equity. Vodafone Idea decided to avail that option and will issue 16.13 billion shares at 10 rupees a piece worth 161.33 billion rupees , the mobile carrierThe company's shares surged as much as 24.8% to 8.55 rupees, to log their best intra-day percentage gain in 16 months.
The government's nod comes after a "firm commitment" from the co-promoter Aditya Birla Group to run the company and bring necessary investment, India's telecom Minister Ashwini Vaishnaw said in a statement on Friday.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
India's Vodafone Idea rises after order to convert $2 bln govt dues into equityShares of Vodafone India Ltd rose nearly 9.5% on Monday after the government ordered the company to convert into equity all the dues owed to the government for use of airwaves, including the interest related to payments for spectrum.
Read more »
India's Adani shares see extended sell-off as credit warnings kick inThe sell-off in India's Adani Group's seven listed companies, where more than $110 billion in market value has already evaporated, continued on Monday as a U.S. short-seller's report critical of the group's finances now led to credit warnings.
Read more »
Bad Idea Comics Is The Publisher That Cried Wolf - The Bootleg Is RealSo it turns out the fake Bad Idea bootleg comic is a real Bad Idea bootleg comic. But can you blame me for thinking the fake was a fake fake?
Read more »
NRSC plans to take sides in primaries — but is this really such a good idea?The National Republican Senatorial Committee is going back to a policy of taking sides in primaries, we report this morning:
Read more »
School vouchers remain a very bad idea in TexasOpinion: Gov. Greg Abbott’s pro-voucher talking points don't mention is that Texas ranked 48th in child health and 33rd in education outcomes in 2022.
Read more »