Explained: How the Vodafone Idea rescue plan is a good step

The Union Govt will soon own around 35.8% stake in Vodafone Idea, the nation's third largest telecom operator. Vodafone Idea is a combination of the India unit of the UK's Vodafone Group and Idea Cellular. The Vodafone Idea board has approved the rescue plan, which entails conversion of dues into equity. The new shares pattern leaves Vodafone with 28.5% holding, while the Aditya Birla Group's stake will be around 17.5%. Vodafone Idea shares witnesses slumped after the debt-laden telco approved the rescue plan.