Vodafone Idea shares continue to decline; further tumble over 24% after KM Birla steps down as chairman

PTIUpdated: Thursday, August 05, 2021, 12:17 PM IST
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Kumar Manglam Birla, the chairman of Aditya Birla Group, has written to the Cabinet Secretary saying that he is ready to hand over his stake in Vodafone-Idea to any government entity/ Representational image |

Shares of Vodafone Idea Ltd continued to tumble for the fourth consecutive day on Thursday and further plunged over 24 per cent to its 52-week low in morning trade.

The counter has been bearing a deserted look of late and has tumbled nearly 45 per cent in four trading sessions.

On Thursday, the stock plunged 24.54 per cent to its 52-week low of Rs 4.55 on the BSE.

At the NSE, it cracked 24.16 per cent to its 52-week low of Rs 4.55.

At 12.16 pm, the shares were down Rs 0.75 or 12.44 percent at Rs 5.28.

Kumar Mangalam Birla on Wednesday stepped down as the chairman of Vodafone Idea Ltd.

Birla -- who had in June offered to give away his holding in the joint venture with Britain''s Vodafone to the government -- will cease to be a director and non-executive chairman of the company at the end of business hours on Wednesday, VIL had said in a filing to the stock exchanges.

It did not give any reason for Birla''s decision.

He will be replaced by Himanshu Kapania (who was earlier the managing director and CEO of Birla''s Idea Cellular) as the new chairman of Vodafone Idea Ltd.

The Supreme Court, last month, had rejected petitions by telecom companies including Vodafone Idea and Bharti Airtel, for rectification of alleged errors in calculation of adjusted gross revenue (AGR) related dues payable by them.

According to official data, VIL had an AGR liability of Rs 58,254 crore, out of which it has paid Rs 7,854.37 crore while Rs 50,399.63 crore is outstanding.

In the BSE filing on Wednesday evening, VIL said: "The Board of Directors of Vodafone Idea, at its meeting, have accepted the request of Kumar Mangalam Birla to step down as Non-Executive Director and Non-Executive Chairman of the Board with effect from close of business hours on 4 August, 2021."

Consequently, the board has "unanimously elected" Himanshu Kapania, currently a non-executive director and a nominee of the Aditya Birla Group, as the non-executive chairman.

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