Vodafone Idea stated in the filing that the funds raised will be used to pay “ATC by the Company under the master lease agreements” and for “general corporate purposes”.
“Including inter alia the approval of the shareholders of the company, and the Government of India having converted the interest from deferment of Adjusted Gross Revenue and spectrum dues owed by the Company,” the preferential issue is subject to certain conditions.
SEBI approved the government’s plan to convert Vi’s pending deals into equity on Thursday.
The SEBI approval was needed because the government had to convert its stake for Rs 11.80, while Vodafone Idea stock was below Rs 10.
The government sought SEBI approval because SEBI rules prohibited it. The government can now convert.