Vodafone Idea Plunges as India to Own 36% Under Bailout Plan
- State will own 35.8% in the troubled carrier: exchange filing
- Vodafone, Birla Group to have lower stakes in proposed plan
A customer exits a Vodafone Idea Ltd. store in Mumbai.
Photographer: Dhiraj Singh/BloombergThis article is for subscribers only.
Shares of Vodafone Idea Ltd. dropped after its board approved a rescue plan that gives almost 36% stake to the Indian government in lieu of past dues and makes it the largest shareholder in the unprofitable wireless phone operator.
The restructuring in which some of the government dues will be converted to equity will result in dilution for all existing shareholders of the company including the founders, India’s no. 3 wireless carrier said in an exchange filing Tuesday. Vodafone Group Plc will own around 28.5% and Aditya Birla Group will have about 17.8% in the company after the conversion, it said.