![\"\"](\"\/Themes\/Release\/images\/responsive\/ettelecom-default.jpg\")
New Delhi: Aditya Birla Group<\/a> (ABG) chairman Kumar Mangalam Birla<\/a> has resigned as non-executive chairman and director of cash-strapped Vodafone Idea<\/a> (Vi). The development casts further gloom at a time when the telco is desperately trying to raise funds andseek government aid to continue operations.
Himanshu Kapania, currently non-executive director and the former managing director of the erstwhile Idea Cellular before its merger with Vodafone India, will replace Birla.
“The Board of Directors of Vodafone Idea<\/a> Limited, at its meeting held today, have accepted the request of Mr Kumar Mangalam Birla<\/a> to step down as Non-Executive Director and Non-Executive Chairman of the Board with effect from close of business hours on 4th August, 2021,” the company said in a notice to stock exchanges on Wednesday.
Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK’s Vodafone Group.
Vodafone Group, which has a 44.39% stake in Vi, declined to comment.
A person familiar with the Aditya Birla Group<\/a>’s thinking said the conglomerate will be as supportive of Vi under Kapania as it was under Birla. But, like its partner Vodafone Group, ABG too won’t be infusing fresh equity into Vodafone Idea as the group’s holdings are through listed entities.
“Shareholders of other listed group companies may not want their funds invested in telecom. So ABG won’t invest any fresh equity. But apart from that, the group’s commitment towards Vi is underlined by the fact that it has appointed Kapania, who is a telecom industry<\/a> veteran with 25 years’ experience,” the person said. The spot on the board vacated by Birla was being filled up by ABG chief financial official Sushil Agarwal, the person added.
‘Sector can’t be used as cash cow’
<\/strong>
“This appointment also shows the group’s commitment towards the telco.”
Birla’s resignation – which was announced after market hours - comes less than two months after he offered to hand over the group’s 27.66 % stake in Vi to any public sector or domestic financial entity that could keep the company afloat.
Without immediate government support, Birla said that the telco would be driven to an irretrievable point of collapse.
The Vodafone Group did not comment on Birla’s letter, but CEO Nick Read reiterated on July 23 – over a month and a half after Birla’s June 7 letter – that it would not infuse any more equity in its Indian joint venture.
The government has so far not responded to Birla’s letter. Officials have privately questioned the Vodafone Group’s silence and the difficulties of accepting such a proposal.
The Centre is, however, preparing a relief package for the telecom sector, which would also benefit Vi, the officials have said.
The package could include allowing surrender of spectrum, reduction of bank guarantees, phasing out or reducing levies such as licence fees and spectrum usage charges and prospectively redefining adjusted gross revenue (AGR) to exclude non-telecom items.
“This (Birla’s step) is an expression of frustration. Vodafone Group is not infusing any money as well and the telecom package that the government may come up with is now too late,” said BK Syngal, an industry<\/a> veteran and former chairman of state-run Bharat Sanchar Nigam Ltd. “This sector can’t be used as a cash cow. This is a writing on the wall that the sector is heading towards a duopoly”.
Vi’s stock crashed 20% to Rs 5.94 on Wednesday, a 52-week low, before ending 18.5% lower at Rs 6.03 as investors exited fearing the company was headed for a default and bankruptcy.
Shares lost Rs 3,936.75 crore in value, a day after losing Rs 2,443 crore when they ended 10.3% lower.
The contents of Birla’s letter were made public on Monday.
Read also<\/h4><\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2021-08-04" data-index="article_1">
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Kumar Mangalam贝拉下台是沃达丰的想法非执行主席;Himanshu Kapania接管
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
新德里消息:Aditya Birla集团(ABG)主席Kumar Mangalam贝拉辞去非执行主席和主任囊中羞涩沃达丰的想法(Vi),开发石膏模型进一步低迷之时,电信正拼命地筹集资金andseek政府援助继续操作。
Himanshu Kapania,目前非执行董事和前董事总经理的想法细胞与沃达丰印度合并前,将取代贝拉。
”的董事会沃达丰的想法有限,今天举行的会议上,接受了先生的请求Kumar Mangalam贝拉辞去非执行董事和非执行董事会主席由营业时间8月4日,2021年,”该公司在通知证券交易所周三说。
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
沃达丰集团的44.39%的股份Vi,拒绝置评。
一位知情人士透露Aditya Birla集团的想法表示,集团将一样支持Vi在Kapania贝拉。但是,和其合作伙伴沃达丰集团,ABG也不会把新股本注入沃达丰想法通过上市实体集团控股。
“其他上市集团公司的股东可能不希望他们的资金投资于电信。所以ABG不会任何新股本投资。但除此之外,该集团的承诺对Vi是这一事实突显出,任命Kapania,电信行业25年的资深经验,”这个人说。空出的现货在董事会通过贝拉被填满ABG首席财务官员Sushil Agarwal人补充说。
”部门不能作为摇钱树
“这约会也显示了对电信集团的承诺。”
贝拉的辞职——市场小时后宣布——不到两个月后他提出第六集团27.66%的股份交给任何公共部门或国内金融实体,可以保持公司的运转。
没有直接的政府的支持,博拉说,电信将推动一个无法挽回的崩溃。
沃达丰集团没有评论贝拉的信,但首席执行官尼克读重申7月23日,在一个半月后,贝拉的6月7日的信,它将不再注入股本在印度的合资企业。
贝拉政府迄今为止没有回应的信。官员们私下质疑沃达丰集团的沉默的困难,接受这样的提议。
然而,中心是为电信部门,准备救援包也将从中受益Vi,官员说。
包可能包括允许投降的频谱,减少银行担保,逐步取消或减少征收执照费和光谱等使用费用和前瞻性地重新定义调整总收入(AGR)排除non-telecom物品。
“这(贝拉的一步)是一个沮丧的表情。沃达丰集团不注入任何钱和电信包,政府可能想出现在太迟了,”BK Syngal说行业老兵和前主席国营Bharat Sanchar Nigam说有限公司”这个行业不能用作摇钱树。这是一个不祥之兆,该行业正走向垄断”。
Vi周三股价暴跌20%至5.94卢比,52周低点,收低18.5%至6.03卢比,因投资者退出之前担心公司走向违约和破产。
股票失去了价值3936卢比,一天损失2443卢比当他们结束后下跌10.3%。
贝拉的信的内容都是在周一公布。
读也
市场观察人士表示,该计划救援包不会解决电信的即时现金需求,盯着一个潜在的31亿美元(23500卢比)在现金流缺口FY23,按科塔克证券。
Vi结束3月的现金余额为350卢比,努力提高25000卢比在过去10个月没有成功。
“作为贷款人,我们非常失望对事态发展。如果发起人跳船,它不利于我们的努力保持公司持续经营,”银行的一位高级官员说。“我们一直在定期与管理和政府一个解决之道。”
合并后的实体,它已经成为中国最大的电信,多年来失去了收入和用户市场份额的竞争对手Jio和Bharti Airtel的依赖。
债务飙升至1.8十万的卢比在1季度借来买频谱和投资网络,当收入急剧下降,导致现金流损失减少。
六世合并以来从未公布季度获利。它的1季度净亏损6985。1卢比。
电信被推到边缘后,最高法院在2019年9月扩大AGR的定义包括non-telecom项目和留给Vi法定法案超过58000卢比。它已经支付了7854卢比的会费到目前为止,所有试图减少AGR法案合法一事无成。
贝拉在信中说,电信在去年做了一切努力通过审慎的资本支出提高其运作效率,人力资源重组,和其他成本削减措施。
“尽管如此,财务状况(尤其是流动性状况)的公司已经急剧恶化,”他说。
贝拉也寻求积极行动等长期请求AGR责任清晰,足够的光谱暂停支付,和一个底价政权对投资者对该行业有信心投资Vi。
这封信比上个月最高法院命令驳回了沃达丰的想法和其他电信公司允许整改的算术错误的AGR费的计算。
贝拉圈子进入电信行业在1995年通过通信。同年,Kumar Mangalam父亲死后接管了公司。
引入细胞目的是作为一个品牌2002年一系列名称更改后与Grasim并购合资企业行业,AT&T公司和塔塔集团。
退出后,美国电话电报公司(AT&T)和塔塔在2004年和2006年,分别想法成为ABG的单位。
想法在2008年收购了香料通信和已经演变为一个强大的球员在印度电信市场依赖Jio进入2016年。
进入了激烈的价格战,引发大规模整合并退出。
<\/span><\/figcaption><\/figure>
New Delhi: Aditya Birla Group<\/a> (ABG) chairman Kumar Mangalam Birla<\/a> has resigned as non-executive chairman and director of cash-strapped Vodafone Idea<\/a> (Vi). The development casts further gloom at a time when the telco is desperately trying to raise funds andseek government aid to continue operations.
Himanshu Kapania, currently non-executive director and the former managing director of the erstwhile Idea Cellular before its merger with Vodafone India, will replace Birla.
“The Board of Directors of Vodafone Idea<\/a> Limited, at its meeting held today, have accepted the request of Mr Kumar Mangalam Birla<\/a> to step down as Non-Executive Director and Non-Executive Chairman of the Board with effect from close of business hours on 4th August, 2021,” the company said in a notice to stock exchanges on Wednesday.
Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK’s Vodafone Group.
Vodafone Group, which has a 44.39% stake in Vi, declined to comment.
A person familiar with the Aditya Birla Group<\/a>’s thinking said the conglomerate will be as supportive of Vi under Kapania as it was under Birla. But, like its partner Vodafone Group, ABG too won’t be infusing fresh equity into Vodafone Idea as the group’s holdings are through listed entities.
“Shareholders of other listed group companies may not want their funds invested in telecom. So ABG won’t invest any fresh equity. But apart from that, the group’s commitment towards Vi is underlined by the fact that it has appointed Kapania, who is a telecom industry<\/a> veteran with 25 years’ experience,” the person said. The spot on the board vacated by Birla was being filled up by ABG chief financial official Sushil Agarwal, the person added.
‘Sector can’t be used as cash cow’
<\/strong>
“This appointment also shows the group’s commitment towards the telco.”
Birla’s resignation – which was announced after market hours - comes less than two months after he offered to hand over the group’s 27.66 % stake in Vi to any public sector or domestic financial entity that could keep the company afloat.
Without immediate government support, Birla said that the telco would be driven to an irretrievable point of collapse.
The Vodafone Group did not comment on Birla’s letter, but CEO Nick Read reiterated on July 23 – over a month and a half after Birla’s June 7 letter – that it would not infuse any more equity in its Indian joint venture.
The government has so far not responded to Birla’s letter. Officials have privately questioned the Vodafone Group’s silence and the difficulties of accepting such a proposal.
The Centre is, however, preparing a relief package for the telecom sector, which would also benefit Vi, the officials have said.
The package could include allowing surrender of spectrum, reduction of bank guarantees, phasing out or reducing levies such as licence fees and spectrum usage charges and prospectively redefining adjusted gross revenue (AGR) to exclude non-telecom items.
“This (Birla’s step) is an expression of frustration. Vodafone Group is not infusing any money as well and the telecom package that the government may come up with is now too late,” said BK Syngal, an industry<\/a> veteran and former chairman of state-run Bharat Sanchar Nigam Ltd. “This sector can’t be used as a cash cow. This is a writing on the wall that the sector is heading towards a duopoly”.
Vi’s stock crashed 20% to Rs 5.94 on Wednesday, a 52-week low, before ending 18.5% lower at Rs 6.03 as investors exited fearing the company was headed for a default and bankruptcy.
Shares lost Rs 3,936.75 crore in value, a day after losing Rs 2,443 crore when they ended 10.3% lower.
The contents of Birla’s letter were made public on Monday.
Read also<\/h4><\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-news_link="//www.iser-br.com/news/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea/85038585">
<\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2021-08-04" data-index="article_1">
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Kumar Mangalam贝拉下台是沃达丰的想法非执行主席;Himanshu Kapania接管
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
新德里消息:Aditya Birla集团(ABG)主席Kumar Mangalam贝拉辞去非执行主席和主任囊中羞涩沃达丰的想法(Vi),开发石膏模型进一步低迷之时,电信正拼命地筹集资金andseek政府援助继续操作。
Himanshu Kapania,目前非执行董事和前董事总经理的想法细胞与沃达丰印度合并前,将取代贝拉。
”的董事会沃达丰的想法有限,今天举行的会议上,接受了先生的请求Kumar Mangalam贝拉辞去非执行董事和非执行董事会主席由营业时间8月4日,2021年,”该公司在通知证券交易所周三说。
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
沃达丰集团的44.39%的股份Vi,拒绝置评。
一位知情人士透露Aditya Birla集团的想法表示,集团将一样支持Vi在Kapania贝拉。但是,和其合作伙伴沃达丰集团,ABG也不会把新股本注入沃达丰想法通过上市实体集团控股。
“其他上市集团公司的股东可能不希望他们的资金投资于电信。所以ABG不会任何新股本投资。但除此之外,该集团的承诺对Vi是这一事实突显出,任命Kapania,电信行业25年的资深经验,”这个人说。空出的现货在董事会通过贝拉被填满ABG首席财务官员Sushil Agarwal人补充说。
”部门不能作为摇钱树
“这约会也显示了对电信集团的承诺。”
贝拉的辞职——市场小时后宣布——不到两个月后他提出第六集团27.66%的股份交给任何公共部门或国内金融实体,可以保持公司的运转。
没有直接的政府的支持,博拉说,电信将推动一个无法挽回的崩溃。
沃达丰集团没有评论贝拉的信,但首席执行官尼克读重申7月23日,在一个半月后,贝拉的6月7日的信,它将不再注入股本在印度的合资企业。
贝拉政府迄今为止没有回应的信。官员们私下质疑沃达丰集团的沉默的困难,接受这样的提议。
然而,中心是为电信部门,准备救援包也将从中受益Vi,官员说。
包可能包括允许投降的频谱,减少银行担保,逐步取消或减少征收执照费和光谱等使用费用和前瞻性地重新定义调整总收入(AGR)排除non-telecom物品。
“这(贝拉的一步)是一个沮丧的表情。沃达丰集团不注入任何钱和电信包,政府可能想出现在太迟了,”BK Syngal说行业老兵和前主席国营Bharat Sanchar Nigam说有限公司”这个行业不能用作摇钱树。这是一个不祥之兆,该行业正走向垄断”。
Vi周三股价暴跌20%至5.94卢比,52周低点,收低18.5%至6.03卢比,因投资者退出之前担心公司走向违约和破产。
股票失去了价值3936卢比,一天损失2443卢比当他们结束后下跌10.3%。
贝拉的信的内容都是在周一公布。
读也
市场观察人士表示,该计划救援包不会解决电信的即时现金需求,盯着一个潜在的31亿美元(23500卢比)在现金流缺口FY23,按科塔克证券。
Vi结束3月的现金余额为350卢比,努力提高25000卢比在过去10个月没有成功。
“作为贷款人,我们非常失望对事态发展。如果发起人跳船,它不利于我们的努力保持公司持续经营,”银行的一位高级官员说。“我们一直在定期与管理和政府一个解决之道。”
合并后的实体,它已经成为中国最大的电信,多年来失去了收入和用户市场份额的竞争对手Jio和Bharti Airtel的依赖。
债务飙升至1.8十万的卢比在1季度借来买频谱和投资网络,当收入急剧下降,导致现金流损失减少。
六世合并以来从未公布季度获利。它的1季度净亏损6985。1卢比。
电信被推到边缘后,最高法院在2019年9月扩大AGR的定义包括non-telecom项目和留给Vi法定法案超过58000卢比。它已经支付了7854卢比的会费到目前为止,所有试图减少AGR法案合法一事无成。
贝拉在信中说,电信在去年做了一切努力通过审慎的资本支出提高其运作效率,人力资源重组,和其他成本削减措施。
“尽管如此,财务状况(尤其是流动性状况)的公司已经急剧恶化,”他说。
贝拉也寻求积极行动等长期请求AGR责任清晰,足够的光谱暂停支付,和一个底价政权对投资者对该行业有信心投资Vi。
这封信比上个月最高法院命令驳回了沃达丰的想法和其他电信公司允许整改的算术错误的AGR费的计算。
贝拉圈子进入电信行业在1995年通过通信。同年,Kumar Mangalam父亲死后接管了公司。
引入细胞目的是作为一个品牌2002年一系列名称更改后与Grasim并购合资企业行业,AT&T公司和塔塔集团。
退出后,美国电话电报公司(AT&T)和塔塔在2004年和2006年,分别想法成为ABG的单位。
想法在2008年收购了香料通信和已经演变为一个强大的球员在印度电信市场依赖Jio进入2016年。
进入了激烈的价格战,引发大规模整合并退出。
<\/span><\/figcaption><\/figure>
New Delhi: Aditya Birla Group<\/a> (ABG) chairman Kumar Mangalam Birla<\/a> has resigned as non-executive chairman and director of cash-strapped Vodafone Idea<\/a> (Vi). The development casts further gloom at a time when the telco is desperately trying to raise funds andseek government aid to continue operations.
Himanshu Kapania, currently non-executive director and the former managing director of the erstwhile Idea Cellular before its merger with Vodafone India, will replace Birla.
“The Board of Directors of Vodafone Idea<\/a> Limited, at its meeting held today, have accepted the request of Mr Kumar Mangalam Birla<\/a> to step down as Non-Executive Director and Non-Executive Chairman of the Board with effect from close of business hours on 4th August, 2021,” the company said in a notice to stock exchanges on Wednesday.
Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK’s Vodafone Group.
Vodafone Group, which has a 44.39% stake in Vi, declined to comment.
A person familiar with the Aditya Birla Group<\/a>’s thinking said the conglomerate will be as supportive of Vi under Kapania as it was under Birla. But, like its partner Vodafone Group, ABG too won’t be infusing fresh equity into Vodafone Idea as the group’s holdings are through listed entities.
“Shareholders of other listed group companies may not want their funds invested in telecom. So ABG won’t invest any fresh equity. But apart from that, the group’s commitment towards Vi is underlined by the fact that it has appointed Kapania, who is a telecom industry<\/a> veteran with 25 years’ experience,” the person said. The spot on the board vacated by Birla was being filled up by ABG chief financial official Sushil Agarwal, the person added.
‘Sector can’t be used as cash cow’
<\/strong>
“This appointment also shows the group’s commitment towards the telco.”
Birla’s resignation – which was announced after market hours - comes less than two months after he offered to hand over the group’s 27.66 % stake in Vi to any public sector or domestic financial entity that could keep the company afloat.
Without immediate government support, Birla said that the telco would be driven to an irretrievable point of collapse.
The Vodafone Group did not comment on Birla’s letter, but CEO Nick Read reiterated on July 23 – over a month and a half after Birla’s June 7 letter – that it would not infuse any more equity in its Indian joint venture.
The government has so far not responded to Birla’s letter. Officials have privately questioned the Vodafone Group’s silence and the difficulties of accepting such a proposal.
The Centre is, however, preparing a relief package for the telecom sector, which would also benefit Vi, the officials have said.
The package could include allowing surrender of spectrum, reduction of bank guarantees, phasing out or reducing levies such as licence fees and spectrum usage charges and prospectively redefining adjusted gross revenue (AGR) to exclude non-telecom items.
“This (Birla’s step) is an expression of frustration. Vodafone Group is not infusing any money as well and the telecom package that the government may come up with is now too late,” said BK Syngal, an industry<\/a> veteran and former chairman of state-run Bharat Sanchar Nigam Ltd. “This sector can’t be used as a cash cow. This is a writing on the wall that the sector is heading towards a duopoly”.
Vi’s stock crashed 20% to Rs 5.94 on Wednesday, a 52-week low, before ending 18.5% lower at Rs 6.03 as investors exited fearing the company was headed for a default and bankruptcy.
Shares lost Rs 3,936.75 crore in value, a day after losing Rs 2,443 crore when they ended 10.3% lower.
The contents of Birla’s letter were made public on Monday.
Read also<\/h4><\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
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<\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2021-08-04" data-index="article_1">
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Kumar Mangalam贝拉下台是沃达丰的想法非执行主席;Himanshu Kapania接管
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
新德里消息:Aditya Birla集团(ABG)主席Kumar Mangalam贝拉辞去非执行主席和主任囊中羞涩沃达丰的想法(Vi),开发石膏模型进一步低迷之时,电信正拼命地筹集资金andseek政府援助继续操作。
Himanshu Kapania,目前非执行董事和前董事总经理的想法细胞与沃达丰印度合并前,将取代贝拉。
”的董事会沃达丰的想法有限,今天举行的会议上,接受了先生的请求Kumar Mangalam贝拉辞去非执行董事和非执行董事会主席由营业时间8月4日,2021年,”该公司在通知证券交易所周三说。
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
沃达丰集团的44.39%的股份Vi,拒绝置评。
一位知情人士透露Aditya Birla集团的想法表示,集团将一样支持Vi在Kapania贝拉。但是,和其合作伙伴沃达丰集团,ABG也不会把新股本注入沃达丰想法通过上市实体集团控股。
“其他上市集团公司的股东可能不希望他们的资金投资于电信。所以ABG不会任何新股本投资。但除此之外,该集团的承诺对Vi是这一事实突显出,任命Kapania,电信行业25年的资深经验,”这个人说。空出的现货在董事会通过贝拉被填满ABG首席财务官员Sushil Agarwal人补充说。
”部门不能作为摇钱树
“这约会也显示了对电信集团的承诺。”
贝拉的辞职——市场小时后宣布——不到两个月后他提出第六集团27.66%的股份交给任何公共部门或国内金融实体,可以保持公司的运转。
没有直接的政府的支持,博拉说,电信将推动一个无法挽回的崩溃。
沃达丰集团没有评论贝拉的信,但首席执行官尼克读重申7月23日,在一个半月后,贝拉的6月7日的信,它将不再注入股本在印度的合资企业。
贝拉政府迄今为止没有回应的信。官员们私下质疑沃达丰集团的沉默的困难,接受这样的提议。
然而,中心是为电信部门,准备救援包也将从中受益Vi,官员说。
包可能包括允许投降的频谱,减少银行担保,逐步取消或减少征收执照费和光谱等使用费用和前瞻性地重新定义调整总收入(AGR)排除non-telecom物品。
“这(贝拉的一步)是一个沮丧的表情。沃达丰集团不注入任何钱和电信包,政府可能想出现在太迟了,”BK Syngal说行业老兵和前主席国营Bharat Sanchar Nigam说有限公司”这个行业不能用作摇钱树。这是一个不祥之兆,该行业正走向垄断”。
Vi周三股价暴跌20%至5.94卢比,52周低点,收低18.5%至6.03卢比,因投资者退出之前担心公司走向违约和破产。
股票失去了价值3936卢比,一天损失2443卢比当他们结束后下跌10.3%。
贝拉的信的内容都是在周一公布。
读也
市场观察人士表示,该计划救援包不会解决电信的即时现金需求,盯着一个潜在的31亿美元(23500卢比)在现金流缺口FY23,按科塔克证券。
Vi结束3月的现金余额为350卢比,努力提高25000卢比在过去10个月没有成功。
“作为贷款人,我们非常失望对事态发展。如果发起人跳船,它不利于我们的努力保持公司持续经营,”银行的一位高级官员说。“我们一直在定期与管理和政府一个解决之道。”
合并后的实体,它已经成为中国最大的电信,多年来失去了收入和用户市场份额的竞争对手Jio和Bharti Airtel的依赖。
债务飙升至1.8十万的卢比在1季度借来买频谱和投资网络,当收入急剧下降,导致现金流损失减少。
六世合并以来从未公布季度获利。它的1季度净亏损6985。1卢比。
电信被推到边缘后,最高法院在2019年9月扩大AGR的定义包括non-telecom项目和留给Vi法定法案超过58000卢比。它已经支付了7854卢比的会费到目前为止,所有试图减少AGR法案合法一事无成。
贝拉在信中说,电信在去年做了一切努力通过审慎的资本支出提高其运作效率,人力资源重组,和其他成本削减措施。
“尽管如此,财务状况(尤其是流动性状况)的公司已经急剧恶化,”他说。
贝拉也寻求积极行动等长期请求AGR责任清晰,足够的光谱暂停支付,和一个底价政权对投资者对该行业有信心投资Vi。
这封信比上个月最高法院命令驳回了沃达丰的想法和其他电信公司允许整改的算术错误的AGR费的计算。
贝拉圈子进入电信行业在1995年通过通信。同年,Kumar Mangalam父亲死后接管了公司。
引入细胞目的是作为一个品牌2002年一系列名称更改后与Grasim并购合资企业行业,AT&T公司和塔塔集团。
退出后,美国电话电报公司(AT&T)和塔塔在2004年和2006年,分别想法成为ABG的单位。
想法在2008年收购了香料通信和已经演变为一个强大的球员在印度电信市场依赖Jio进入2016年。
进入了激烈的价格战,引发大规模整合并退出。
<\/span><\/figcaption><\/figure>
New Delhi: Aditya Birla Group<\/a> (ABG) chairman Kumar Mangalam Birla<\/a> has resigned as non-executive chairman and director of cash-strapped Vodafone Idea<\/a> (Vi). The development casts further gloom at a time when the telco is desperately trying to raise funds andseek government aid to continue operations.
Himanshu Kapania, currently non-executive director and the former managing director of the erstwhile Idea Cellular before its merger with Vodafone India, will replace Birla.
“The Board of Directors of Vodafone Idea<\/a> Limited, at its meeting held today, have accepted the request of Mr Kumar Mangalam Birla<\/a> to step down as Non-Executive Director and Non-Executive Chairman of the Board with effect from close of business hours on 4th August, 2021,” the company said in a notice to stock exchanges on Wednesday.
Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK’s Vodafone Group.
Vodafone Group, which has a 44.39% stake in Vi, declined to comment.
A person familiar with the Aditya Birla Group<\/a>’s thinking said the conglomerate will be as supportive of Vi under Kapania as it was under Birla. But, like its partner Vodafone Group, ABG too won’t be infusing fresh equity into Vodafone Idea as the group’s holdings are through listed entities.
“Shareholders of other listed group companies may not want their funds invested in telecom. So ABG won’t invest any fresh equity. But apart from that, the group’s commitment towards Vi is underlined by the fact that it has appointed Kapania, who is a telecom industry<\/a> veteran with 25 years’ experience,” the person said. The spot on the board vacated by Birla was being filled up by ABG chief financial official Sushil Agarwal, the person added.
‘Sector can’t be used as cash cow’
<\/strong>
“This appointment also shows the group’s commitment towards the telco.”
Birla’s resignation – which was announced after market hours - comes less than two months after he offered to hand over the group’s 27.66 % stake in Vi to any public sector or domestic financial entity that could keep the company afloat.
Without immediate government support, Birla said that the telco would be driven to an irretrievable point of collapse.
The Vodafone Group did not comment on Birla’s letter, but CEO Nick Read reiterated on July 23 – over a month and a half after Birla’s June 7 letter – that it would not infuse any more equity in its Indian joint venture.
The government has so far not responded to Birla’s letter. Officials have privately questioned the Vodafone Group’s silence and the difficulties of accepting such a proposal.
The Centre is, however, preparing a relief package for the telecom sector, which would also benefit Vi, the officials have said.
The package could include allowing surrender of spectrum, reduction of bank guarantees, phasing out or reducing levies such as licence fees and spectrum usage charges and prospectively redefining adjusted gross revenue (AGR) to exclude non-telecom items.
“This (Birla’s step) is an expression of frustration. Vodafone Group is not infusing any money as well and the telecom package that the government may come up with is now too late,” said BK Syngal, an industry<\/a> veteran and former chairman of state-run Bharat Sanchar Nigam Ltd. “This sector can’t be used as a cash cow. This is a writing on the wall that the sector is heading towards a duopoly”.
Vi’s stock crashed 20% to Rs 5.94 on Wednesday, a 52-week low, before ending 18.5% lower at Rs 6.03 as investors exited fearing the company was headed for a default and bankruptcy.
Shares lost Rs 3,936.75 crore in value, a day after losing Rs 2,443 crore when they ended 10.3% lower.
The contents of Birla’s letter were made public on Monday.
Read also<\/h4><\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-news_link="//www.iser-br.com/news/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea/85038585">
<\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2021-08-04" data-index="article_1">
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Kumar Mangalam贝拉下台是沃达丰的想法非执行主席;Himanshu Kapania接管
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
新德里消息:Aditya Birla集团(ABG)主席Kumar Mangalam贝拉辞去非执行主席和主任囊中羞涩沃达丰的想法(Vi),开发石膏模型进一步低迷之时,电信正拼命地筹集资金andseek政府援助继续操作。
Himanshu Kapania,目前非执行董事和前董事总经理的想法细胞与沃达丰印度合并前,将取代贝拉。
”的董事会沃达丰的想法有限,今天举行的会议上,接受了先生的请求Kumar Mangalam贝拉辞去非执行董事和非执行董事会主席由营业时间8月4日,2021年,”该公司在通知证券交易所周三说。
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
沃达丰集团的44.39%的股份Vi,拒绝置评。
一位知情人士透露Aditya Birla集团的想法表示,集团将一样支持Vi在Kapania贝拉。但是,和其合作伙伴沃达丰集团,ABG也不会把新股本注入沃达丰想法通过上市实体集团控股。
“其他上市集团公司的股东可能不希望他们的资金投资于电信。所以ABG不会任何新股本投资。但除此之外,该集团的承诺对Vi是这一事实突显出,任命Kapania,电信行业25年的资深经验,”这个人说。空出的现货在董事会通过贝拉被填满ABG首席财务官员Sushil Agarwal人补充说。
”部门不能作为摇钱树
“这约会也显示了对电信集团的承诺。”
贝拉的辞职——市场小时后宣布——不到两个月后他提出第六集团27.66%的股份交给任何公共部门或国内金融实体,可以保持公司的运转。
没有直接的政府的支持,博拉说,电信将推动一个无法挽回的崩溃。
沃达丰集团没有评论贝拉的信,但首席执行官尼克读重申7月23日,在一个半月后,贝拉的6月7日的信,它将不再注入股本在印度的合资企业。
贝拉政府迄今为止没有回应的信。官员们私下质疑沃达丰集团的沉默的困难,接受这样的提议。
然而,中心是为电信部门,准备救援包也将从中受益Vi,官员说。
包可能包括允许投降的频谱,减少银行担保,逐步取消或减少征收执照费和光谱等使用费用和前瞻性地重新定义调整总收入(AGR)排除non-telecom物品。
“这(贝拉的一步)是一个沮丧的表情。沃达丰集团不注入任何钱和电信包,政府可能想出现在太迟了,”BK Syngal说行业老兵和前主席国营Bharat Sanchar Nigam说有限公司”这个行业不能用作摇钱树。这是一个不祥之兆,该行业正走向垄断”。
Vi周三股价暴跌20%至5.94卢比,52周低点,收低18.5%至6.03卢比,因投资者退出之前担心公司走向违约和破产。
股票失去了价值3936卢比,一天损失2443卢比当他们结束后下跌10.3%。
贝拉的信的内容都是在周一公布。
读也
市场观察人士表示,该计划救援包不会解决电信的即时现金需求,盯着一个潜在的31亿美元(23500卢比)在现金流缺口FY23,按科塔克证券。
Vi结束3月的现金余额为350卢比,努力提高25000卢比在过去10个月没有成功。
“作为贷款人,我们非常失望对事态发展。如果发起人跳船,它不利于我们的努力保持公司持续经营,”银行的一位高级官员说。“我们一直在定期与管理和政府一个解决之道。”
合并后的实体,它已经成为中国最大的电信,多年来失去了收入和用户市场份额的竞争对手Jio和Bharti Airtel的依赖。
债务飙升至1.8十万的卢比在1季度借来买频谱和投资网络,当收入急剧下降,导致现金流损失减少。
六世合并以来从未公布季度获利。它的1季度净亏损6985。1卢比。
电信被推到边缘后,最高法院在2019年9月扩大AGR的定义包括non-telecom项目和留给Vi法定法案超过58000卢比。它已经支付了7854卢比的会费到目前为止,所有试图减少AGR法案合法一事无成。
贝拉在信中说,电信在去年做了一切努力通过审慎的资本支出提高其运作效率,人力资源重组,和其他成本削减措施。
“尽管如此,财务状况(尤其是流动性状况)的公司已经急剧恶化,”他说。
贝拉也寻求积极行动等长期请求AGR责任清晰,足够的光谱暂停支付,和一个底价政权对投资者对该行业有信心投资Vi。
这封信比上个月最高法院命令驳回了沃达丰的想法和其他电信公司允许整改的算术错误的AGR费的计算。
贝拉圈子进入电信行业在1995年通过通信。同年,Kumar Mangalam父亲死后接管了公司。
引入细胞目的是作为一个品牌2002年一系列名称更改后与Grasim并购合资企业行业,AT&T公司和塔塔集团。
退出后,美国电话电报公司(AT&T)和塔塔在2004年和2006年,分别想法成为ABG的单位。
想法在2008年收购了香料通信和已经演变为一个强大的球员在印度电信市场依赖Jio进入2016年。
进入了激烈的价格战,引发大规模整合并退出。
<\/span><\/figcaption><\/figure>
New Delhi: Aditya Birla Group<\/a> (ABG) chairman Kumar Mangalam Birla<\/a> has resigned as non-executive chairman and director of cash-strapped Vodafone Idea<\/a> (Vi). The development casts further gloom at a time when the telco is desperately trying to raise funds andseek government aid to continue operations.
Himanshu Kapania, currently non-executive director and the former managing director of the erstwhile Idea Cellular before its merger with Vodafone India, will replace Birla.
“The Board of Directors of Vodafone Idea<\/a> Limited, at its meeting held today, have accepted the request of Mr Kumar Mangalam Birla<\/a> to step down as Non-Executive Director and Non-Executive Chairman of the Board with effect from close of business hours on 4th August, 2021,” the company said in a notice to stock exchanges on Wednesday.
Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK’s Vodafone Group.
Vodafone Group, which has a 44.39% stake in Vi, declined to comment.
A person familiar with the Aditya Birla Group<\/a>’s thinking said the conglomerate will be as supportive of Vi under Kapania as it was under Birla. But, like its partner Vodafone Group, ABG too won’t be infusing fresh equity into Vodafone Idea as the group’s holdings are through listed entities.
“Shareholders of other listed group companies may not want their funds invested in telecom. So ABG won’t invest any fresh equity. But apart from that, the group’s commitment towards Vi is underlined by the fact that it has appointed Kapania, who is a telecom industry<\/a> veteran with 25 years’ experience,” the person said. The spot on the board vacated by Birla was being filled up by ABG chief financial official Sushil Agarwal, the person added.
‘Sector can’t be used as cash cow’
<\/strong>
“This appointment also shows the group’s commitment towards the telco.”
Birla’s resignation – which was announced after market hours - comes less than two months after he offered to hand over the group’s 27.66 % stake in Vi to any public sector or domestic financial entity that could keep the company afloat.
Without immediate government support, Birla said that the telco would be driven to an irretrievable point of collapse.
The Vodafone Group did not comment on Birla’s letter, but CEO Nick Read reiterated on July 23 – over a month and a half after Birla’s June 7 letter – that it would not infuse any more equity in its Indian joint venture.
The government has so far not responded to Birla’s letter. Officials have privately questioned the Vodafone Group’s silence and the difficulties of accepting such a proposal.
The Centre is, however, preparing a relief package for the telecom sector, which would also benefit Vi, the officials have said.
The package could include allowing surrender of spectrum, reduction of bank guarantees, phasing out or reducing levies such as licence fees and spectrum usage charges and prospectively redefining adjusted gross revenue (AGR) to exclude non-telecom items.
“This (Birla’s step) is an expression of frustration. Vodafone Group is not infusing any money as well and the telecom package that the government may come up with is now too late,” said BK Syngal, an industry<\/a> veteran and former chairman of state-run Bharat Sanchar Nigam Ltd. “This sector can’t be used as a cash cow. This is a writing on the wall that the sector is heading towards a duopoly”.
Vi’s stock crashed 20% to Rs 5.94 on Wednesday, a 52-week low, before ending 18.5% lower at Rs 6.03 as investors exited fearing the company was headed for a default and bankruptcy.
Shares lost Rs 3,936.75 crore in value, a day after losing Rs 2,443 crore when they ended 10.3% lower.
The contents of Birla’s letter were made public on Monday.
Read also<\/h4><\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-news_link="//www.iser-br.com/news/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea/85038585">
<\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2021-08-04" data-index="article_1">
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Kumar Mangalam贝拉下台是沃达丰的想法非执行主席;Himanshu Kapania接管
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
新德里消息:Aditya Birla集团(ABG)主席Kumar Mangalam贝拉辞去非执行主席和主任囊中羞涩沃达丰的想法(Vi),开发石膏模型进一步低迷之时,电信正拼命地筹集资金andseek政府援助继续操作。
Himanshu Kapania,目前非执行董事和前董事总经理的想法细胞与沃达丰印度合并前,将取代贝拉。
”的董事会沃达丰的想法有限,今天举行的会议上,接受了先生的请求Kumar Mangalam贝拉辞去非执行董事和非执行董事会主席由营业时间8月4日,2021年,”该公司在通知证券交易所周三说。
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
沃达丰集团的44.39%的股份Vi,拒绝置评。
一位知情人士透露Aditya Birla集团的想法表示,集团将一样支持Vi在Kapania贝拉。但是,和其合作伙伴沃达丰集团,ABG也不会把新股本注入沃达丰想法通过上市实体集团控股。
“其他上市集团公司的股东可能不希望他们的资金投资于电信。所以ABG不会任何新股本投资。但除此之外,该集团的承诺对Vi是这一事实突显出,任命Kapania,电信行业25年的资深经验,”这个人说。空出的现货在董事会通过贝拉被填满ABG首席财务官员Sushil Agarwal人补充说。
”部门不能作为摇钱树
“这约会也显示了对电信集团的承诺。”
贝拉的辞职——市场小时后宣布——不到两个月后他提出第六集团27.66%的股份交给任何公共部门或国内金融实体,可以保持公司的运转。
没有直接的政府的支持,博拉说,电信将推动一个无法挽回的崩溃。
沃达丰集团没有评论贝拉的信,但首席执行官尼克读重申7月23日,在一个半月后,贝拉的6月7日的信,它将不再注入股本在印度的合资企业。
贝拉政府迄今为止没有回应的信。官员们私下质疑沃达丰集团的沉默的困难,接受这样的提议。
然而,中心是为电信部门,准备救援包也将从中受益Vi,官员说。
包可能包括允许投降的频谱,减少银行担保,逐步取消或减少征收执照费和光谱等使用费用和前瞻性地重新定义调整总收入(AGR)排除non-telecom物品。
“这(贝拉的一步)是一个沮丧的表情。沃达丰集团不注入任何钱和电信包,政府可能想出现在太迟了,”BK Syngal说行业老兵和前主席国营Bharat Sanchar Nigam说有限公司”这个行业不能用作摇钱树。这是一个不祥之兆,该行业正走向垄断”。
Vi周三股价暴跌20%至5.94卢比,52周低点,收低18.5%至6.03卢比,因投资者退出之前担心公司走向违约和破产。
股票失去了价值3936卢比,一天损失2443卢比当他们结束后下跌10.3%。
贝拉的信的内容都是在周一公布。
读也
市场观察人士表示,该计划救援包不会解决电信的即时现金需求,盯着一个潜在的31亿美元(23500卢比)在现金流缺口FY23,按科塔克证券。
Vi结束3月的现金余额为350卢比,努力提高25000卢比在过去10个月没有成功。
“作为贷款人,我们非常失望对事态发展。如果发起人跳船,它不利于我们的努力保持公司持续经营,”银行的一位高级官员说。“我们一直在定期与管理和政府一个解决之道。”
合并后的实体,它已经成为中国最大的电信,多年来失去了收入和用户市场份额的竞争对手Jio和Bharti Airtel的依赖。
债务飙升至1.8十万的卢比在1季度借来买频谱和投资网络,当收入急剧下降,导致现金流损失减少。
六世合并以来从未公布季度获利。它的1季度净亏损6985。1卢比。
电信被推到边缘后,最高法院在2019年9月扩大AGR的定义包括non-telecom项目和留给Vi法定法案超过58000卢比。它已经支付了7854卢比的会费到目前为止,所有试图减少AGR法案合法一事无成。
贝拉在信中说,电信在去年做了一切努力通过审慎的资本支出提高其运作效率,人力资源重组,和其他成本削减措施。
“尽管如此,财务状况(尤其是流动性状况)的公司已经急剧恶化,”他说。
贝拉也寻求积极行动等长期请求AGR责任清晰,足够的光谱暂停支付,和一个底价政权对投资者对该行业有信心投资Vi。
这封信比上个月最高法院命令驳回了沃达丰的想法和其他电信公司允许整改的算术错误的AGR费的计算。
贝拉圈子进入电信行业在1995年通过通信。同年,Kumar Mangalam父亲死后接管了公司。
引入细胞目的是作为一个品牌2002年一系列名称更改后与Grasim并购合资企业行业,AT&T公司和塔塔集团。
退出后,美国电话电报公司(AT&T)和塔塔在2004年和2006年,分别想法成为ABG的单位。
想法在2008年收购了香料通信和已经演变为一个强大的球员在印度电信市场依赖Jio进入2016年。
进入了激烈的价格战,引发大规模整合并退出。
<\/span><\/figcaption><\/figure>
New Delhi: Aditya Birla Group<\/a> (ABG) chairman Kumar Mangalam Birla<\/a> has resigned as non-executive chairman and director of cash-strapped Vodafone Idea<\/a> (Vi). The development casts further gloom at a time when the telco is desperately trying to raise funds andseek government aid to continue operations.
Himanshu Kapania, currently non-executive director and the former managing director of the erstwhile Idea Cellular before its merger with Vodafone India, will replace Birla.
“The Board of Directors of Vodafone Idea<\/a> Limited, at its meeting held today, have accepted the request of Mr Kumar Mangalam Birla<\/a> to step down as Non-Executive Director and Non-Executive Chairman of the Board with effect from close of business hours on 4th August, 2021,” the company said in a notice to stock exchanges on Wednesday.
Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK’s Vodafone Group.
Vodafone Group, which has a 44.39% stake in Vi, declined to comment.
A person familiar with the Aditya Birla Group<\/a>’s thinking said the conglomerate will be as supportive of Vi under Kapania as it was under Birla. But, like its partner Vodafone Group, ABG too won’t be infusing fresh equity into Vodafone Idea as the group’s holdings are through listed entities.
“Shareholders of other listed group companies may not want their funds invested in telecom. So ABG won’t invest any fresh equity. But apart from that, the group’s commitment towards Vi is underlined by the fact that it has appointed Kapania, who is a telecom industry<\/a> veteran with 25 years’ experience,” the person said. The spot on the board vacated by Birla was being filled up by ABG chief financial official Sushil Agarwal, the person added.
‘Sector can’t be used as cash cow’
<\/strong>
“This appointment also shows the group’s commitment towards the telco.”
Birla’s resignation – which was announced after market hours - comes less than two months after he offered to hand over the group’s 27.66 % stake in Vi to any public sector or domestic financial entity that could keep the company afloat.
Without immediate government support, Birla said that the telco would be driven to an irretrievable point of collapse.
The Vodafone Group did not comment on Birla’s letter, but CEO Nick Read reiterated on July 23 – over a month and a half after Birla’s June 7 letter – that it would not infuse any more equity in its Indian joint venture.
The government has so far not responded to Birla’s letter. Officials have privately questioned the Vodafone Group’s silence and the difficulties of accepting such a proposal.
The Centre is, however, preparing a relief package for the telecom sector, which would also benefit Vi, the officials have said.
The package could include allowing surrender of spectrum, reduction of bank guarantees, phasing out or reducing levies such as licence fees and spectrum usage charges and prospectively redefining adjusted gross revenue (AGR) to exclude non-telecom items.
“This (Birla’s step) is an expression of frustration. Vodafone Group is not infusing any money as well and the telecom package that the government may come up with is now too late,” said BK Syngal, an industry<\/a> veteran and former chairman of state-run Bharat Sanchar Nigam Ltd. “This sector can’t be used as a cash cow. This is a writing on the wall that the sector is heading towards a duopoly”.
Vi’s stock crashed 20% to Rs 5.94 on Wednesday, a 52-week low, before ending 18.5% lower at Rs 6.03 as investors exited fearing the company was headed for a default and bankruptcy.
Shares lost Rs 3,936.75 crore in value, a day after losing Rs 2,443 crore when they ended 10.3% lower.
The contents of Birla’s letter were made public on Monday.
Read also<\/h4><\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-news_link="//www.iser-br.com/news/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea/85038585">
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Kumar Mangalam贝拉下台是沃达丰的想法非执行主席;Himanshu Kapania接管
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
读到
新德里消息:Aditya Birla集团(ABG)主席Kumar Mangalam贝拉辞去非执行主席和主任囊中羞涩沃达丰的想法(Vi),开发石膏模型进一步低迷之时,电信正拼命地筹集资金andseek政府援助继续操作。
Himanshu Kapania,目前非执行董事和前董事总经理的想法细胞与沃达丰印度合并前,将取代贝拉。
”的董事会沃达丰的想法有限,今天举行的会议上,接受了先生的请求Kumar Mangalam贝拉辞去非执行董事和非执行董事会主席由营业时间8月4日,2021年,”该公司在通知证券交易所周三说。
贝拉已经占领了沃达丰的非执行主席的想法在2018年8月关闭了一个230亿美元的合并后的想法细胞和沃达丰印度、英国沃达丰集团的电信单位。
沃达丰集团的44.39%的股份Vi,拒绝置评。
一位知情人士透露Aditya Birla集团的想法表示,集团将一样支持Vi在Kapania贝拉。但是,和其合作伙伴沃达丰集团,ABG也不会把新股本注入沃达丰想法通过上市实体集团控股。
“其他上市集团公司的股东可能不希望他们的资金投资于电信。所以ABG不会任何新股本投资。但除此之外,该集团的承诺对Vi是这一事实突显出,任命Kapania,电信行业25年的资深经验,”这个人说。空出的现货在董事会通过贝拉被填满ABG首席财务官员Sushil Agarwal人补充说。
”部门不能作为摇钱树
“这约会也显示了对电信集团的承诺。”
贝拉的辞职——市场小时后宣布——不到两个月后他提出第六集团27.66%的股份交给任何公共部门或国内金融实体,可以保持公司的运转。
没有直接的政府的支持,博拉说,电信将推动一个无法挽回的崩溃。
沃达丰集团没有评论贝拉的信,但首席执行官尼克读重申7月23日,在一个半月后,贝拉的6月7日的信,它将不再注入股本在印度的合资企业。
贝拉政府迄今为止没有回应的信。官员们私下质疑沃达丰集团的沉默的困难,接受这样的提议。
然而,中心是为电信部门,准备救援包也将从中受益Vi,官员说。
包可能包括允许投降的频谱,减少银行担保,逐步取消或减少征收执照费和光谱等使用费用和前瞻性地重新定义调整总收入(AGR)排除non-telecom物品。
“这(贝拉的一步)是一个沮丧的表情。沃达丰集团不注入任何钱和电信包,政府可能想出现在太迟了,”BK Syngal说行业老兵和前主席国营Bharat Sanchar Nigam说有限公司”这个行业不能用作摇钱树。这是一个不祥之兆,该行业正走向垄断”。
Vi周三股价暴跌20%至5.94卢比,52周低点,收低18.5%至6.03卢比,因投资者退出之前担心公司走向违约和破产。
股票失去了价值3936卢比,一天损失2443卢比当他们结束后下跌10.3%。
贝拉的信的内容都是在周一公布。
读也
市场观察人士表示,该计划救援包不会解决电信的即时现金需求,盯着一个潜在的31亿美元(23500卢比)在现金流缺口FY23,按科塔克证券。
Vi结束3月的现金余额为350卢比,努力提高25000卢比在过去10个月没有成功。
“作为贷款人,我们非常失望对事态发展。如果发起人跳船,它不利于我们的努力保持公司持续经营,”银行的一位高级官员说。“我们一直在定期与管理和政府一个解决之道。”
合并后的实体,它已经成为中国最大的电信,多年来失去了收入和用户市场份额的竞争对手Jio和Bharti Airtel的依赖。
债务飙升至1.8十万的卢比在1季度借来买频谱和投资网络,当收入急剧下降,导致现金流损失减少。
六世合并以来从未公布季度获利。它的1季度净亏损6985。1卢比。
电信被推到边缘后,最高法院在2019年9月扩大AGR的定义包括non-telecom项目和留给Vi法定法案超过58000卢比。它已经支付了7854卢比的会费到目前为止,所有试图减少AGR法案合法一事无成。
贝拉在信中说,电信在去年做了一切努力通过审慎的资本支出提高其运作效率,人力资源重组,和其他成本削减措施。
“尽管如此,财务状况(尤其是流动性状况)的公司已经急剧恶化,”他说。
贝拉也寻求积极行动等长期请求AGR责任清晰,足够的光谱暂停支付,和一个底价政权对投资者对该行业有信心投资Vi。
这封信比上个月最高法院命令驳回了沃达丰的想法和其他电信公司允许整改的算术错误的AGR费的计算。
贝拉圈子进入电信行业在1995年通过通信。同年,Kumar Mangalam父亲死后接管了公司。
引入细胞目的是作为一个品牌2002年一系列名称更改后与Grasim并购合资企业行业,AT&T公司和塔塔集团。
退出后,美国电话电报公司(AT&T)和塔塔在2004年和2006年,分别想法成为ABG的单位。
想法在2008年收购了香料通信和已经演变为一个强大的球员在印度电信市场依赖Jio进入2016年。
进入了激烈的价格战,引发大规模整合并退出。
New Delhi: Aditya Birla Group<\/a> (ABG) chairman Kumar Mangalam Birla<\/a> has resigned as non-executive chairman and director of cash-strapped Vodafone Idea<\/a> (Vi). The development casts further gloom at a time when the telco is desperately trying to raise funds andseek government aid to continue operations.
Himanshu Kapania, currently non-executive director and the former managing director of the erstwhile Idea Cellular before its merger with Vodafone India, will replace Birla.
“The Board of Directors of Vodafone Idea<\/a> Limited, at its meeting held today, have accepted the request of Mr Kumar Mangalam Birla<\/a> to step down as Non-Executive Director and Non-Executive Chairman of the Board with effect from close of business hours on 4th August, 2021,” the company said in a notice to stock exchanges on Wednesday.
Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK’s Vodafone Group.
Vodafone Group, which has a 44.39% stake in Vi, declined to comment.
A person familiar with the Aditya Birla Group<\/a>’s thinking said the conglomerate will be as supportive of Vi under Kapania as it was under Birla. But, like its partner Vodafone Group, ABG too won’t be infusing fresh equity into Vodafone Idea as the group’s holdings are through listed entities.
“Shareholders of other listed group companies may not want their funds invested in telecom. So ABG won’t invest any fresh equity. But apart from that, the group’s commitment towards Vi is underlined by the fact that it has appointed Kapania, who is a telecom industry<\/a> veteran with 25 years’ experience,” the person said. The spot on the board vacated by Birla was being filled up by ABG chief financial official Sushil Agarwal, the person added.
‘Sector can’t be used as cash cow’
<\/strong>
“This appointment also shows the group’s commitment towards the telco.”
Birla’s resignation – which was announced after market hours - comes less than two months after he offered to hand over the group’s 27.66 % stake in Vi to any public sector or domestic financial entity that could keep the company afloat.
Without immediate government support, Birla said that the telco would be driven to an irretrievable point of collapse.
The Vodafone Group did not comment on Birla’s letter, but CEO Nick Read reiterated on July 23 – over a month and a half after Birla’s June 7 letter – that it would not infuse any more equity in its Indian joint venture.
The government has so far not responded to Birla’s letter. Officials have privately questioned the Vodafone Group’s silence and the difficulties of accepting such a proposal.
The Centre is, however, preparing a relief package for the telecom sector, which would also benefit Vi, the officials have said.
The package could include allowing surrender of spectrum, reduction of bank guarantees, phasing out or reducing levies such as licence fees and spectrum usage charges and prospectively redefining adjusted gross revenue (AGR) to exclude non-telecom items.
“This (Birla’s step) is an expression of frustration. Vodafone Group is not infusing any money as well and the telecom package that the government may come up with is now too late,” said BK Syngal, an industry<\/a> veteran and former chairman of state-run Bharat Sanchar Nigam Ltd. “This sector can’t be used as a cash cow. This is a writing on the wall that the sector is heading towards a duopoly”.
Vi’s stock crashed 20% to Rs 5.94 on Wednesday, a 52-week low, before ending 18.5% lower at Rs 6.03 as investors exited fearing the company was headed for a default and bankruptcy.
Shares lost Rs 3,936.75 crore in value, a day after losing Rs 2,443 crore when they ended 10.3% lower.
The contents of Birla’s letter were made public on Monday.
Read also<\/h4><\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-news_link="//www.iser-br.com/news/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea/85038585">
<\/a><\/figure>Banks to discuss next course of action on Vodafone Idea<\/a><\/h5><\/div><\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-news_link="//www.iser-br.com/news/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea/85038585">
<\/a><\/figure>Government preparing relief package for telecom sector<\/a><\/h5><\/div><\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
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<\/a><\/figure>Vodafone Idea in 'highly stressed situation', but won't infuse more equity: Vodafone CEO Read<\/a><\/h5><\/div><\/a><\/figure>Kumar Mangalam Birla willing to give up his stake in Vodafone Idea to a PSU<\/a><\/h5><\/div><\/div><\/div>
Market watchers said the planned relief package would not address the immediate cash needs of the telco, which is staring at a potential $3.1 billion (Rs 23,500 crore) shortfall in cash flows in FY23, as per Kotak Securities.
Vi’s cash balance as of end March was Rs 350 crore and its efforts at raising Rs 25,000 crore over the last 10 months have not been successful.
“As lenders, we are extremely disappointed by this development. If the promoters jump the ship, it’s detrimental to our efforts to keep running the company as a going concern,” said a senior bank official. “We have been in regular talks with the management and the government to figure a way out.”
The merged entity, which had become the country’s largest telco, has over the years lost both revenue and subscriber market share to rivals Reliance Jio and Bharti Airtel.
Its debt ballooned to Rs 1.8 lakh crore in the January-March quarter as it borrowed to buy spectrum and invest in its network, at a time when revenue was falling sharply, leading to dwindling cash flows and heavy losses.
Vi has never reported a quarterly profit since the merger. Its net loss in the January-March quarter was Rs 6,985.1 crore.
The telco was pushed to the brink after the Supreme Court ruled in September 2019 to widen the definition of AGR to include non-telecom items and left Vi with a statutory bill of over Rs 58,000 crore. It has paid Rs 7,854 crore of the dues so far, and all attempts to reduce the AGR bill legally have come to nought.
In his letter, Birla said the telco had made all efforts over the last year to improve its operational efficiency through prudent capital spending, manpower restructuring, and other cost cutting steps.
“Despite all that, the financial condition (particularly the liquidity position) of the company has sharply deteriorated,” he said.
Birla had also sought positive actions on long standing requests such as clarity on AGR liability, adequate moratorium on spectrum payments, and a floor price regime for investors to have confidence in the sector to invest in Vi.
The letter predated last month’s Supreme Court order which dismissed the plea of Vodafone Idea and other telcos to permit rectification of ‘arithmetical errors’ in the computation of AGR dues.
The Birlas entered the telecom sector in 1995 through Birla Communications. The same year, Kumar Mangalam took over the company after his father’s death.
Idea Cellular was introduced as a brand in 2002 after a series of name changes following mergers and joint ventures with Grasim Industries, AT&T Corp and Tata Group.
After the exits of AT&T and the Tatas in 2004 and 2006, respectively, Idea became a unit of ABG.
Idea bought Spice Communications in 2008 and grew to be a strong player in the Indian telecom market before Reliance Jio entered in 2016.
The entry led to a fierce price war, triggering large scale consolidation and exits.
<\/body>","next_sibling":[{"msid":85038104,"title":"Recent SC judgement on AGR disappointing; taking legal advice on review petition: Airtel CEO Gopal Vittal","entity_type":"ARTICLE","link":"\/news\/recent-sc-judgement-on-agr-disappointing-taking-legal-advice-on-review-petition-airtel-ceo-gopal-vittal\/85038104","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":85038585,"entity_type":"ARTICLE","title":"Kumar Mangalam Birla steps down as Vodafone Idea non-exec chairman; Himanshu Kapania to take over","synopsis":"Birla had taken over as non-executive chairman of Vodafone Idea in August 2018 after the closure of a $23-billion merger between Idea Cellular and Vodafone India, the telecom unit of UK\u2019s Vodafone Group.","titleseo":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea","status":"ACTIVE","authors":[],"analytics":{"comments":0,"views":9278,"shares":0,"engagementtimems":34832000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2021-08-04 18:39:54","lastupd":"2021-08-05 08:29:09","breadcrumbTags":["Vodafone Idea","vodafone idea ltd","Cellular Operators Association of India","BSE","global gsma board","Aditya Birla Group","Industry","Kumar Mangalam Birla","COAI","FICCI Council on Telecom"],"secinfo":{"seolocation":"telecomnews\/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea"}}" data-news_link="//www.iser-br.com/news/kumar-mangalam-birla-stepping-down-as-non-exec-chairman-of-vodafone-idea/85038585">
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