The Centre has no intention to run Vodafone Idea Ltd (VIL) or appoint a board member, managing director and CEO Ravinder Takkar said on Wednesday.

VIL on Tuesday said it would exercise the option to convert around Rs 16,000 crore of interest on adjusted gross revenue (AGR) and spectrum instalment dues into equity, giving the Centre a likely 35.8 per cent stake in the loss-making company.

Takkar said both the current promoters — Vodafone group plc and the Aditya Birla group — will continue to manage and control the company.

The shares will be issued to the Centre on a preferential basis, and the entire exercise will be completed in the coming months.

“In all our interactions with the government leading up to the package and even after the announcement of the package, it has been very clearly stated by the government that they do not want to run this company. They do not have the desire to take over the operations of this company... They want three private players in the market, they certainly do not want a duopoly or monopoly,” Takkar said.

Fund-raising

The focus will now shift to fund raising plans — and Takkar said the company was going to come out with an announcement fairly soon.

He said the reforms measures taken by the government has been a positive sign for the investors and “should help relieve some of the fears or some of the concerns that they had brought up”.

“So, I would say that this process is positive for the fundraising part. Certainly, it has been positive from investor feedback. And I would hope that we will continue forward as we have been on the fundraising process and hope to actually be back shortly,” with an announcement, he added.

Shares of VIL rallied because of expectations the equity conversion will be positive for the company. At the BSE, the scrip ended at Rs 12.80 — gain of 8.47 per cent over its last close.

Vaishnaw

Telecom minister Ashwini Vaishnaw told PTI the government will remain an investor only. “The companies will be run by the professionals. All the debt liabilities will remain responsibility of the companies. The companies have given us commitment.”