- Vodafone Idea stock has dipped by the maximum amount of 10% within the early market session in Tuesday. If you're wondering why; this is often due to Kumar Mangalam Birla’s willingness to sell his group’s stake within the company
Vodafone Idea stock has dipped by the maximum amount of 10% within the early market session on Tuesday. If you’re wondering why this is often due to Kumar Mangalam Birla’s willingness to sell his group’s stake within the company. consistent with a Business Standard report that surfaced yesterday, Kumar Mangalam Birla, Chairman of Aditya Birla Group, wrote a letter to the Union Cabinet Secretary, Rajiv Gauba, on June 7 that his group’s promoter stake in Vodafone Idea Limited (VIL) are often sold to the govt for keeping the corporate alive.
Vodafone Idea’s Rising Debt Over the Years
Vodafone Idea features a ton of debt on its shoulders. The third-largest telecom operator of the country has got to pay the govt thousands of crores in adjusted gross sales (AGR) dues alone. alongside the rising debt of the corporate, there aren’t any profits coming in either. As of the top of March 2021, VIL has garnered over Rs 1.6 trillion in debt against Rs 37,000 crore in 2016.
What’s interesting to notice here is that Birla wrote to the Union Cabinet Secretary a month before the Supreme Court (SC) had rejected Vi’s plea of reassessing the AGR dues.
Birla said that he’s quite willing to sell his stake within the company to any of the govt or public sector companies in order that the telco can keep going. VIL hasn’t been ready to secure any new investors, and with the regulator not enforcing a floor for tariffs, it’s like Vi’s journey to find a replacement investor goes to be even harder now.
It will be a stimulating event to witness if the govt shows interest in buying out Birla’s stake within the company. Vodafone Idea and BSNL merger also can be within the books. Vi desperately needs new investors, alternatively the corporate might crumble under the financial pressure it’s already in.