The Aditya Birla Group has reportedly promised the Indian government that it would bring the necessary investments for Vodafone Idea. The Indian government had put the dues to the equity conversion process in the telco on hold because the promoters weren't showing too much interest in the company. The government's condition to go ahead was to see the promoters invest significant capital into the company. On Friday, the Ministry of Communications (MoC) asked the telco to go ahead with the conversion process of the interest dues into equity for the government. Post the conversion; the Indian government will be the largest stakeholder in the company.
Read More - Vodafone Idea Gets Green Flag to Convert Interest Dues to Equity for Govt
According to a PTI report, Ashwini Vaishnaw, union telecom minister, said that the Aditya Birla Group would run the company and bring necessary investments. Vaishnaw said that the government wants India to be a three-player market. It is also worth recalling that Airtel had said that it would not have any issues with Vodafone UK (the largest promoter in Vi currently) selling the remaining stake in Indus Towers to use the proceeds for clearing the dues of Vodafone Idea. It would be interesting to see if that actually happens now.
Vodafone Idea would be relieved after a long time, and the telco could potentially come in a decent position because of this. Its fundraising plans could also see some positive because of this move from the government.
