Bangalore: Shares of India Vodafone Idea The stock fell as much as 24% on Thursday, a day after the troubled telecom operator’s board accepted the request of billionaire-industrial Kumar Mangalam Birla to step down as non-executive chairman.
Birla had planned the merger of Idea Cellular, which was part of his Aditya Birla Group, and the UK’s India operations. vodafone plc in 2018 to form Vodafone Idea, which was the country’s largest telecom operator at the time.
Vodafone Idea said in a stock exchange filing on Wednesday that Birla, who has a net worth of $14 billion according to Forbes, will be replaced as non-executive chairman by Aditya Birla Group nominee Himanshu Kapania.
The company declined to comment on why Birla sought to step down, and representatives of the Aditya Birla Group did not immediately respond to an email from Reuters.
Vodafone has bled customers in recent years as it struggled to compete with Bharti Airtel and Mukesh Ambani-controlled Reliance Jio.
Adding to Vodafone’s woes, the Indian government sought about $13 billion in dues from the country’s telecom operators in the form of license fees and access to the airwaves. Vodafone holds a majority stake.
India’s top court last year gave telecom companies 10 years till 2031 to clear dues after the January deadline. Last month, the court dismissed a plea by mobile carriers seeking rectification of errors in calculation of dues to the government.
Data from India’s telecom regulator showed that as of May 31, Vodafone had 277.6 million wireless subscribers, third ahead of rivals Reliance Jio and Bharti Airtel, at 431.2 million and 348.3 million, respectively.
Vodafone shares were down 20.8% at Rs 4.75, and hit their session low since May 15, 2020. Airtel shares rose 3.4%.
Birla had planned the merger of Idea Cellular, which was part of his Aditya Birla Group, and the UK’s India operations. vodafone plc in 2018 to form Vodafone Idea, which was the country’s largest telecom operator at the time.
Vodafone Idea said in a stock exchange filing on Wednesday that Birla, who has a net worth of $14 billion according to Forbes, will be replaced as non-executive chairman by Aditya Birla Group nominee Himanshu Kapania.
The company declined to comment on why Birla sought to step down, and representatives of the Aditya Birla Group did not immediately respond to an email from Reuters.
Vodafone has bled customers in recent years as it struggled to compete with Bharti Airtel and Mukesh Ambani-controlled Reliance Jio.
Adding to Vodafone’s woes, the Indian government sought about $13 billion in dues from the country’s telecom operators in the form of license fees and access to the airwaves. Vodafone holds a majority stake.
India’s top court last year gave telecom companies 10 years till 2031 to clear dues after the January deadline. Last month, the court dismissed a plea by mobile carriers seeking rectification of errors in calculation of dues to the government.
Data from India’s telecom regulator showed that as of May 31, Vodafone had 277.6 million wireless subscribers, third ahead of rivals Reliance Jio and Bharti Airtel, at 431.2 million and 348.3 million, respectively.
Vodafone shares were down 20.8% at Rs 4.75, and hit their session low since May 15, 2020. Airtel shares rose 3.4%.
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