The government is reportedly set to buy a stake in telecom operator Vodafone Idea after its share price stabilised at Rs 10 or higher after it offered shares at that price and was approved by the Finance Ministry in July. Operators in the country were previously able to pay interest on four-year extended spectrum instalments and Adjusted Gross Revenue (AGR) by converting the NPV of claims into equity.

According to a report by PTI, the telecom ministry will approve the acquisition of Vodafone Idea’s stake after the company’s share price stabilises at Rs 10 or more, as per the Securities and Exchange Board of India (SEBI) norms at par value.

The telecom operator reportedly offered the government a stake at the aforementioned price, a proposal that was approved by the finance ministry in July.

Vodafone Idea opted to convert interest liabilities owed to the government of nearly Rs 16,000 crore. After the acquisition, the promoters of the telecom operator will reportedly own 50% of the shares, down from nearly 75%, while the government will own 33%.

However, according to reports, the government will only complete the acquisition of Vodafone Idea shares if the share price reaches Rs 10 or higher. Shares of the operator traded at Rs 9.68 on Thursday – since April 19, it has not crossed the threshold required for a takeover.