Kumar Mangalam Birla Might Sell His Stake In Vodafone-Idea: Here's Why

Vodafone-Idea, which is going through a financial crisis and is looking for Government's support to continue its services. However, now its chairman Kumar Mangalam Birla has reportedly informed DoT the Aditya Birla Group is planning to offload its stake in the firm.

Kumar Mangalam Birla Letter To Cabinet Secretary

Notably, Kumar Mangalam Birla has written a letter to Cabinet Secretary Rajiv Gauba regarding offloading its stake in the company.

Birla said, "I am more than willing to hand over my 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. I and my team will be more than happy to work with the government to urgently explore all possible options and solutions to save the company and strengthen."

It is important to note that this is the first time that Kumar Mangalam Birla shared his plans to offload his stake. He also said that the company seeks support from the Government regarding the adjusted gross revenue, floor pricing, and spectrum payments as it is affecting its revenue books.

"I want to emphasize that without immediate active support from the government on these three issues, certainly by July 21, VIL's financial situation will drive its operations to an irreversible point of collapse," Birla added. For the unaware, Aditya Birla Group has more than 27 percent share in Vodafone-Idea, whereas Vodafone Group has close to 44 percent share.

Vodafone-Idea Fund Raising And Adjusted Gross Revenue

It is worth noting that India's third-largest telecom operator Vodafone-Idea is looking for ways to raise funds and pay its debt in the country. In fact, the telecom operator announced its plans to raise Rs. 25,000 crores to clear all dues, but somehow it did not manage to get the funds.

However, some report claims that the company is again planning to raise money. The telecom operator is likely in discussion with Apollo Management to raise money. The situation of the telecom industry is really bad and Vodafone-Idea might not able to continue services in the coming days without Government support.