After resignation of Kumar Manglam Birla as non-executive chairman, shares of Vodafone Idea crashes about 24% in today's early trade and including this Vodafone Idea stock has tanked 37 per cent in two days.
It is to be known that, Kumar Mangalam Birla resigned as non-executive director and non-executive chairman of Vodafone Idea (VI) on Wednesday. Company said that the board of directors has also accepted Birla's resignation. He will remain in his post till August 4.
And as report says company is currently in a very difficult position and the road ahead for the new non-executive chairman Mr. Himanshu Kapaniya will not be easy.
- The company has a debt of Rs. 1.8 lakh crores including Rs. 11,200 crore of SBI, Rs. 5,000 crore of HDFC and Rs. 1,700 crore of ICICI.
- The company has an adjusted gross revenue (AGR) liability of Rs 58,254 crore. Out of this, it has paid Rs 7,800 crore and has to give another Rs 9,000 crore by March 2022.
- The company has never made a profit after August 2018. Vodafone Idea has not made a profit in any quarter ever since it got merged. They have a debt of Rs 1.80 lakh crore and may face a cash flow shortfall of Rs 24 thousand crore in the financial year 2022-23. The company had a loss of Rs 6,985 crore in the January-March quarter.
- The number of its customers is also continuously decreasing.
- Shares broken up to 85% in last 3 years, stood at Rs 33 in August 2018.
Birla had offered to give up his stake
Earlier, Kumar Mangalam Birla had said that he would give up his stake in Vodafone Idea Limited (VIL), a heavily indebted telecom company. He said that he is ready to give his stake to the government or any other company which the government thinks it can run. And Vodafone Idea's stock shares fell heavily in the stock market after Kumar Mangalam Birla wrote a letter to Rajiv Gauba. On August 5, it broke upto 24% to Rs 4.55 a 52-week low on BSE.
Government can give relief package
It is being said that the government is preparing to give a relief package to the telecom sector. Its proposal has been sent to the Ministry of Finance and may be announced by the end of this month. But the government has not made any plan on the offer of Kumar Mangalam Birla in which he has appealed to the government that he is ready to give his stake in Vodafone Idea to any government company or domestic companies.
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