(Reuters) – Shares of Vodafone Idea surged 10% in on Tuesday after the Indian government said it would convert a part of the telecom company’s outstanding spectrum auction dues into equity, helping lower the firm’s debt load.
The government’s stake in Vodafone Idea will increase to 48.99%, from 22.6%, after it converts 369.5 billion rupees ($4.32 billion) of outstanding spectrum auction dues into equity, Vodafone Idea said late on Sunday.
The company’s shares jumped 10% to 7.48 rupees and were on track to log their best day in more than four months. ($1 = 85.4780 Indian rupees) (This story has been corrected to remove an incorrect reference to exchange-set trading limit, in paragraph 3)
(Reporting by Manvi Pant in Bengaluru; Editing by Savio D’Souza)
