Government of India has directed Vodafone Idea to convert the interest dues owing to deferment of spectrum auction instalments and AGR Dues into equity share. The company will be issuing 1,613.3 shares worth Rs 10 each, to the Government for 33% stake in the company.

This conversion of dues into equity shares could pave the way for the debt beleaguered telecom company to raise funds either from the promoter and/or from an external investor. Fund infusion is crucial for Vodafone Idea, as it is struggling to repay dues to its operational creditors, especially the tower companies.