Vodafone-Idea shares dropped below 17%, with Rs. 6.12 per share on Wednesday. Earlier in the day, shares dropped to a 52-week low of Rs 6.03 per share. With today’s fall, the shares of telecom services providers have tanked 26 per cent in two days.
On Wednesday, Vodafone Group CEO, Nick Raed said in a conference call that the company has no plans to infuse more equity share into loss-making Vodafone Idea.
“It is a highly stressed situation that they are trying to navigate. We as a group try to provide them as much practical support as we can, but I want to make it very clear, we are not putting any additional equity into India,” he said.
In a letter to the cabinet secretary in June, Aditya Birla Group chairman, Kumar Mangalam Birla, who holds 27% share in the company, wrote that he is willing to hand over his stake in the company “to any entity- public sector/government /domestic financial entity or any other that the government may consider worthy of keeping the company as a going concern.”
Vodafone India Limited (VIL) owes the government over Rs. 50,000 crores as adjusted gross revenue (AGR) dues. The company has already paid Rs 7,854.37 crore.
In November 2019, VIL hit a record low of Rs 2.61 per share.
