NEW DELHI: Shares of cash-strapped telecom major Vodafone Idea on Tuesday nosedived over 10 per cent during the day after reports that the group’s chairman has offered to hand over his shares in the company.
During the day, the stock plunged about 13.09 per cent to hit its 52-week low at Rs 7.17 on the BSE. It then rebounded a bit to close 10.3 per cent lower at Rs 7.4 on both the indices.
Unable to work out a revival for the ailing telecom company, chairman Kumar Mangalam Birla has offered to give up his stake to the government or any other entity that it deems fit.
As per reports, in a written letter to cabinet secretary Rajiv Gauba on June 7, Birla had made the offer as a last-ditch effort by the group to salvage the company ahead of possible defaults on statutory payments and bank dues.
According to official data, VIL had an adjusted gross revenue (AGR) liability of Rs 58,254 crore out of which the company has paid Rs 7,854.37 crore and Rs 50,399.63 crore is outstanding.
Birla, who holds around 27 per cent stake in VIL, said in the letter that investors are not willing to invest in the company in the absence of clarity on AGR liability, an adequate moratorium on spectrum payments and most importantly floor pricing regime above the cost of service.
He also highlighted that without immediate support from the Centre the company’s financial situation will come to an “irretrievable point of collapse”.
(With inputs from agencies)
During the day, the stock plunged about 13.09 per cent to hit its 52-week low at Rs 7.17 on the BSE. It then rebounded a bit to close 10.3 per cent lower at Rs 7.4 on both the indices.
Unable to work out a revival for the ailing telecom company, chairman Kumar Mangalam Birla has offered to give up his stake to the government or any other entity that it deems fit.
As per reports, in a written letter to cabinet secretary Rajiv Gauba on June 7, Birla had made the offer as a last-ditch effort by the group to salvage the company ahead of possible defaults on statutory payments and bank dues.
According to official data, VIL had an adjusted gross revenue (AGR) liability of Rs 58,254 crore out of which the company has paid Rs 7,854.37 crore and Rs 50,399.63 crore is outstanding.
Birla, who holds around 27 per cent stake in VIL, said in the letter that investors are not willing to invest in the company in the absence of clarity on AGR liability, an adequate moratorium on spectrum payments and most importantly floor pricing regime above the cost of service.
He also highlighted that without immediate support from the Centre the company’s financial situation will come to an “irretrievable point of collapse”.
(With inputs from agencies)
