New Delhi, Jan 12 (IANS): Shares of Vodafone Idea have rebounded on Wednesday post a sharp decline the previous session after the telecom service provider approved the conversion of its adjusted gross revenue (AGR) and spectrum liabilities into equity.

Besides, the company in a regulatory filing said that following the conversion, it was expected that the Centre would hold around 35.8 per cent of the total outstanding shares of the company.

Reacting to the news of equity conversion and the Centre holding stake in the company, the company's shares fell around 20 per cent on Tuesday.

On Wednesday, the shares, however, settled 8.9 per cent up at Rs 12.85 as Vodafone Idea's Managing Director Ravinder Takkar reportedly said that the Centre would not participate in the management of the company as well as not take over the operations.

According to reports, Takkar said the move to convert debt would help in raising capital besides attracting potential investors.