Vodafone Idea shares closed up 17 per cent Yesterday after Kumar Mangalam Birla met Telecom Minister Ashwini Vaishnav. Also, the government is also considering relief for the telecom sector.
The stock Vodafone Idea closed at Rs 7.15.
Vodafone Idea’s share registered a bumper rally Yesterday. Shares of Vodafone Idea closed at Rs 7.15 with a gain of 17.21 per cent and that was a good news for VI investor. In fact, Kumarmangalam Birla has met Telecom Minister Ashwini Vaishnav, after which the company’s share has registered a rise. Birla has been resigned as the chairman of Vodafone Idea a month ago.
The meeting of the Telecom Minister and Kumar Mangalam Birla comes at a time when the government is considering relief measures for the crisis-hit sector. According to media reports, when Birla met Vaishnav on Wednesday, he told about the challenges of the telecom sector. Together they have appealed for government help to save Vodafone Idea. Vodafone Idea has 27 crore users. At present, this meeting does not seem to have any effect on the service of these users.
Now the government should run the company
On August 4, Vodafone Idea’s board approved the resignation of Kumar Mangalam Birla as chairman. While serving as the non-executive chairman of the company, Birla had written a letter to the cabinet secretary and said that he wanted to hand over the operations of Vodafone Idea to the government. He said that we will not be able to keep this company operational in the present situation, so the government should take care of it now.
1.80 lakh crore outstanding
On June 7, Kumar Mangalam Birla wrote a letter to Cabinet Secretary Rajiv Gauba. He said that we have a moral responsibility towards 27 crore users and that is why we want to hand over the operation of Vodafone Idea to any government company. Apart from this, he has also sought clarification from the government regarding AGR dues. Apart from this, the company has thousands of crores of debt and thousands of crores of spectrum charges. Overall, Vodafone Idea’s liability is about 1.80 lakh crores. Birla had clearly said that it is difficult to run this company without government help.