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Ministry of Communications will inject ₹36,950 crore in Vodafone Idea raising its stake to 48.99% as the telecom company’s spectrum auction dues have been converted to equity shares.

“It is hereby informed that Ministry of Communications, Government of India has, in line with the September 2021 Reforms and Support Package for Telecom Sector has decided to convert the outstanding spectrum auction dues, including deferred dues repayable after expiry of the moratorium period, into equity shares to be issued to the Government of India,” according to the company’s exchange filing on Sunday (March 30).

The government will buy 3695 crore equity share at the price of ₹10 a piece. This will increase the government’s share to 48.99% from the existing 22.6%. “The pricing of shares to be allotted has been arrived basis the higher of the volume weighted price of equity shares during last 90 trading days preceding the Relevant Date or 10 days preceding the Relevant Date,” the filing read.

The share purchase will come into effect within thirty days after regulatory approvals from Securities and Exchange Board of India. The promoters will retain operational control over the company.