Kumar Mangalam Birla’s request to step down as Non-Government Director and Non-Government Chairman of the Vodafone Concept board was accepted immediately by the corporate’s board of administrators.
Telecom veteran Himanshu Kapania was named Non-Government Chairman in his place.
Kumar Mangalam Birla had made a surprising supply at hand over his stake within the debt-hit Vodafone Concept to the federal government or “another entity that the federal government might contemplate worthy to maintain the corporate operational”, in a letter that had surfaced on Monday.
“It’s with a way of obligation in the direction of the 27 crore Indians related by VIL, I’m greater than prepared at hand over my stake within the firm to any entity- public sector/authorities /home monetary entity or another that the federal government might contemplate worthy of conserving the corporate as a going concern,” the Aditya Birla group Chairman had stated within the letter written on July 7.
Vodafone Concept shares nosedived greater than 17 % in a robust market to the touch 52-week lows after the billionaire’s letter was revealed. the shares of Vodafone Concept plunged over 10 % on Tuesday. As we speak its market cap sank to Rs 17,327 crore, down from Rs 24,000 crore, after shares closed 18.5 % down.
Within the letter addressed to Cupboard Secretary Rajiv Gauba, Kumar Mangalam Birla had provided to surrender his 27 % stake and had warned of a “looming disaster”.
Overseas buyers, largely non-Chinese language, are hesitant to make investments in Vodafone Concept for “comprehensible causes,” Mr Birla had stated.
He wrote that buyers weren’t prepared to spend money on the corporate within the absence of readability on AGR legal responsibility, an enough moratorium on spectrum funds and most significantly ground pricing regime above the price of service.
With out quick lively help from the federal government on the three points by July, the monetary state of affairs of Vodafone Concept would come to an “irretrievable level of collapse,” Mr Birla had written.
Vodafone Concept owes greater than Rs 50,000 crore as excellent AGR dues or Adjusted Gross Income owed to the federal government, in accordance with the Division of Telecommunications.
VIL owes Rs 50,399.63 crore in AGR; it has already paid Rs 7,854.37 crore. After Tuesday’s crash, the remaining dues are greater than double the present market cap of Rs 21,264 crore.
As of March 31, gross debt, excluding lease liabilities and AGR dues, is Rs 1,80,310 crore. This contains Rs 96,270 crore in deferred spectrum cost obligations and Rs 23,080 crore in debt to banks and monetary establishments.