Vodafone Idea’s Debt to Equity – Latest news headlines

The Government of India is set to become the largest shareholder of Vodafone Idea with 35.8 percent stake as the company’s board has approved conversion of interest on deferred spectrum and Adjusted Gross Revenue (AGR) dues into equity, Vodafone Idea said on Tuesday.

The debt-laden Vodafone Idea, a joint venture of UK-based Vodafone Group and Kumar Mangalam Birla-led Aditya Birla Group, has opted for conversion of interest on deferred spectrum and Adjusted Gross Revenue (AGR) liabilities into equity.

The conversion will result in dilution to all the existing shareholders of the Company, including the Promoters.

Following conversion, it is expected that the Government will hold around 35.8 percent of the total outstanding shares of the Company, and that the Promoter shareholders would hold around 28.5 percent (Vodafone Group) and around 17.8 percent (Aditya Birla Group), respectively, Vodafone Idea said in a statement.

The share price of Vodafone Idea slumped following the announcement. Trading in Vodafone Idea started sharply down at Rs. 13.40 at the Bombay Stock Exchange (BSE) on Tuesday against the previous day’s close at Rs. 14.85. The company’s share price plummeted to a low of Rs. 12.05 in the morning trade, which is 18.85 percent lower from its previous day’s close.

The company’s share price recovered later in the day. At 11.10am at the Bombay Stock Exchange (BSE) Vodafone Idea share was trading at Rs. 13.

The Board of Directors of Vodafone Idea, at its meeting held on 10th January 2022, approved the conversion of the full amount of such interest related to spectrum auction instalments and AGR Dues into equity.

“The Net Present Value (NPV) of this interest is expected to be about Rs. 16,000 crore as per the Company’s best estimates, subject to confirmation by the DoT. Since the average price of the Company’s shares at the relevant date of 14.08.2021 was below par value, the equity shares will be issued to the Government at par value of Rs. 10 per share, subject to final confirmation by the DoT,” Vodafone Idea said in a regulatory filing to the stock exchanges.

Union cabinet on September 15 approved a slew of measures to support the cash-strapped telecom firms. The relief measures include a four-year moratorium on payment of spectrum and AGR dues. The telecom firms have also been given the option to pay the interest amount arising due to the deferment of payments by way of issuing equity to the government.

Following the government’s announcement Bharti Airtel and Vodafone Idea opted for the four-year moratorium.

However, Bharti Airtel recently decided to pay the interest amount to the government instead of issuing the equity.

After the conversion of the dues into equity, the Government of India will become the largest shareholder of Vodafone Idea. This will require changes in the company’s Articles of Association.

“The governance and other rights of the Promoter shareholders are governed by a Shareholders Agreement (SHA) to which the Company is a party and are also incorporated in the Articles of Association of the Company,” Vodafone Idea said.

The rights are subject to a minimum Qualifying Threshold of 21 percent for each Promoter group, and in light of the conversion of interest into equity, the Promoters have mutually agreed to amend the existing SHA for reducing the minimum Qualifying Threshold from 21 percent to 13 percent for the purpose of exercising certain governing rights e.g. appointment of directors and relating to appointment of certain key officials, etc.

Vodafone Idea said its Board has also taken note of the proposed changes to the existing Shareholders Agreement (SHA), and accordingly authorised execution of the same and also recommended changes in the Articles of Association (AoA) to give effect to the changes in the SHA.

The amendment to the AoA shall be subject to the approval of shareholders in general meeting, for which the Board has authorised officials of the Company to decide the date of shareholders meeting in accordance with the terms of the amendment to the existing SHA as approved by the Board, the company said.

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Latest News Today – Baring Private Equity Asia (BPEA) Shortlists Bidders For

BPEA bought a controlling stake in IT services firm Hexaware in 2013 for about $420 million

Baring Private Equity Asia (BPEA) has shortlisted bidders including Bain Capital and French company Teleperformance SE for its India portfolio firm Hexaware Technologies in a deal that could fetch nearly $3 billion, sources said.

Also in the race are private equity firms KKR & Co and Carlyle Group, said the four people with knowledge of the deal, who declined to be named as the information is confidential.

BPEA has shortlisted a handful from around 10 initial bids to proceed to the next round, which is due in about a month, said the sources. Bids made for Hexaware ranged from $2.5 billion to close to $3 billion, they said.

Hong Kong-based BPEA, Bain, KKR and Carlyle declined to comment. Hexaware and Paris-based Teleperformance, which provides business services, did not immediately respond to requests for comment.

BPEA bought a controlling stake in IT services firm Hexaware in 2013 for about $420 million and took the company private from the local stock exchanges late last year.

Mumbai-headquartered Hexaware provides automation, cloud and customer services-related technology to a wide range of industries including finance, education, hospitality and manufacturing.

With 37 offices in over 30 countries, the company’s revenue grew 6.5% year-on-year in 2020 to $845 million in U.S. dollar terms, according to its annual report.

Its earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 24.4 per cent to 11 billion rupees in 2020.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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Latest News Today – Equity Mutual Funds Show First Inflows After Eight

Mutual funds that invest in equity showed a net inflow of Rs 9,115 crore in March

India’s equity mutual funds recorded inflows in March after eight months of outflows, industry data showed on Thursday, as investors took advantage of a stock market correction to place bets on equities. Mutual funds that invest in equity showed a net inflow of Rs 9,115 crore in March compared with an outflow of Rs 4,534 crore in February, data published by the Association of Mutual Funds in India (AMFI) showed. Indian stock markets touched record highs earlier this year in a rebound from a market crash that followed the spread of the coronavirus last year.

But key Indian market indices have fallen again as rising bold yields and a surge in coronavirus cases weighed on market sentiment. The benchmark S&P BSE Sensex lost as much as eight per cent during March from a peak it recorded in February, creating an opportunity for investors to pump in funds.

“It seems like equity investors waiting on the sidelines for a market correction have started making allocations taking a long-term investing view on equities,” said Kaustubh Belapurkar, a director at investment research group Morningstar India.

Mutual funds investing in debt instruments, however, showed steep outflows in March, mainly as companies took out money to pay tax and other expenses as the financial year drew to a close, the AMFI data showed.

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Rupee Ends Flat Tracking Firm Trend In Domestic Equity | Sidnaz Blog

Rupee Vs Dollar Today: The rupee settled at 72.52 against the dollar

The rupee settled on a flat note against the US dollar on Friday, March 19, tracking a firm trend in domestic equity markets and a stronger American currency in overseas markets. At the interbank foreign exchange market, the domestic unit opened lower at 72.57 against the dollar and registered an intra-day high of 72.46. It witnessed a low of 72.58. In an early trade session, the local unit declined three paise to 72.56 against the greenback. The rupee closed at 72.52 against the American currency, registering a rise of one paisa over its previous close. The local unit had closed at 72.53 against the dollar on Thursday, March 18.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, gained 0.08 per cent to 91.94. The rupee witnessed a volatile session throughout the week. On Thursday, the local unit erased some of its initial gains to settle two paise higher at 72.53 against the dollar amid subdued domestic market sentiment. On Wednesday, March 17, the rupee settled flat to 72.55 against the greenback. On Tuesday, March 16, the domestic unit fell nine paise lower to 72.55 against the dollar due to muted domestic equities.

“The forex market is still jittery about Fed’s move and there are speculations of an early rate-hike which are keeping the US Yields higher. There is also an upside risk to the rapid spread of coronavirus which will keep USDINR spot afloat. But until the spot is trading below 73 zone, the trend will be sideways to bearish within 72.10-72.80. The USDINR spot has to consistently trade above the resistance of 73 to breach 73.20-73.25 zone,” said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.

On the domestic equity market front, the BSE Sensex ended 641.72 points or 1.30 per cent higher at 49,858.24, while the broader NSE Nifty surged 186.15 points or 1.28 per cent to 14,744.00.

“Downward activity in the long term bond yields and weakness in Brent crude have boosted the sentiment of our market. The bullish momentum continued directly from 14350/48580 to 14780/50000. Heavyweight shares in the index rose sharply. On a weekly basis and daily basis, the market has formed reversal formation after completing the corrective move at 14350/48580 levels,” said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.

According to exchange data, the foreign institutional investors remained net buyers in the capital market as they bought shares worth Rs 1,258.47 crore on March 18. Brent crude futures, the global oil benchmark, rose 1.33 per cent to $ 64.12 per barrel.

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