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Government could hold largest stake in Vodafone Idea

The government of India could become the single largest shareholder in debt-laden Vodafone Idea Ltd. as the company will be offering its shares in lieu of interest. As the company had availed to the four-year moratorium on the deferred spectrum and AGR dues, it needs to pay interest on the same.

Though the Department of Telecommunication is yet to confirm the amount, the dilution upon conversion will be very high. Vodafone Idea could end up issuing 1,600 crore shares to the government, which will result in a 35.8% stake.