Will Vodafone Idea become a PSU company now?

Government will get 35.8% stake in Vodafone Idea due to the conversion of its interest on AGR being converted into equity. However, the Government has assured that Vodafone India and Tata Tele would not become PSU companies and will enjoy operating flexibility. Tata Tele is also giving away 9.5% stake in the company against its AGR due interest.

In short, the government will end up with 35.8% stake in Vodafone Idea and 9.2% stake in Tata Tele. While it will become the largest shareholder in Vodafone Idea, government will still remain a minor shareholder in Tata Tele. Government underlined that the sustained continuance of these two players was crucial to prevent a telecom duopoly.