After Vodafone Idea opted to issue equity to government, Tata Teleservices today said its board approved to convert the interest related to AGR Dues into equity.

"It is now informed that pursuant to the Empowered Committee of the Board of Directors, at its meeting held on January 11, 2022, the Company is expressing its desire for the conversion of the full amount of such interest related to AGR Dues into equity subject to mutual agreement on the terms and conditions, including, the governance of the Company post conversion of the interest amount into equity shares and various regulatory/legal provisions including Section 62(4) and Section 53 of the Companies Act," Tata Tele said in an exchange filing.

The net present value (NPV) of the interest is expected to be approximately ₹850 crore as per the company’s estimates, subject to confirmation by the DoT.

The average price of the Company’s shares at the relevant date of August 14, 2021 works out to be Rs. 41.50 per share.

In case of conversion, it will result in dilution of all the existing shareholders of the company, including the Promoters. Following conversion, it is expected that the government will hold about 9.5% stake in the company.

On Tuesday, Tata Tele shares closed 4.99% to close at ₹290.15 apiece on NSE.