Aditya Birla Group Chairman in a letter to Cabinet Secretary Rajiv Gauba said that he is ready to give up his promoter stake in Vodafone-Idea.
New Delhi. Aditya Birla Group Chairman Kumar Mangalam Birla has written a letter to the Central Government. In this letter, he wrote that the debt-ridden Vodafone Idea (Vi) is looking for an investor. He wrote that foreign investors want to know the clear stand of the government regarding the three companies in the Indian telecom market. According to media reports, Birla, in a letter to Cabinet Secretary Rajiv Gauba, said that he is ready to give up his promoter stake in Vodafone-Idea.
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Agree to hand over to a government or domestic financial company
Kumar Mangalam Birla said in the letter that in order to save the existence of Vodafone Idea Limited (VIL), he is ready to hand over his stake to any government or domestic financial company. Birla is also the promoter and chairman of Vodafone India. He holds 27 per cent in this company and 44 per cent in the British company Vodafone Plc. The current market cap of the company is Rs 24,000 crore. Both the promoters have decided not to make any fresh investments in the company. Vodafone India has a debt of about Rs 1.8 lakh crore.
Investors are not ready to extend their hands without the help of the Center
The board of Vodafone Idea Limited had announced to raise a capital of 25 thousand crore rupees in September 2020. But, no investor is ready to make fresh investment in the company without government help. Birla has said in a letter to GABA that if the government considers any company capable of running it, then they are ready to give their stake to it. He said that it is necessary for the government to take immediate steps to instil more confidence in foreign investors.
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In July 2021, the Supreme Court dismissed the petitions of Vodafone Idea and Bharti Airtel for correction in the AGR calculation. According to the company, it owes AGR of Rs 21,500 crore. Out of this, Rs 7,800 crore has been paid. At the same time, according to the Department of Telecommunications, the company has an AGR dues of about Rs 58,000 crore.
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