Kumar Mangalam Birla willing to give up promoter stake in Vodafone Idea

Nearly two months ago, billionaire businessman Kumar Mangalam Birla offered to hand over his 27,66 per cent stake in Vodafone Idea (VIL) to any public sector, government or domestic financial entity who could keep the company afloat. In a letter dated June 7 to Cabinet secretary Rajiv gauba, the aditya Birla group chairman made the suggestion to give up his control of VIL more than a month before the supreme Court dismissed the application of the company for recalculation of the agr dues, highlighting the need for urgent measures from the government.

according to an official data, VIL had adjusted gross revenue (agr) liability of Rs 58,254 crore out of which it has paid Rs 7,854.37 crore and Rs 50,399.63 crore is outstanding. the industrialist and promoter of VIL, in a letter, said that with a sense of duty towards 27 crore (270 million) Indians connected by VIL, he is more than willing to hand over his stake in the company to any entity-public sector/government/domestic financial entity or any other that the government may consider worthy of keeping the company as a going concern. Further, he said potential foreign investors wanted the government to show clear intent of its keenness to have a three player telecom market.

Last september, the VIL board had announced a plan to raise Rs 25,000 crore but in the absence of government support, the investors have not been forthcoming. However, the fundraising is tough given negative net worth and consistent losses of VIL. In the last five years, the company has cumulatively lost Rs 1.37 trillion. Vodafone India is expected to file a review petition against the agr dues calculation order within this month.n