Vodafone Idea board approves KM Birla's request to step down as non-executive director, chairman - Times of India

NEW DELHI: The board of directors of Vodafone Idea Limited on Wednesday approved Kumar Mangalam Birla's request to step down from his position in the company.
In a statement to the bourses, the cash-strapped company informed that Birla will step down as non-executive director and non-executive chairman of the board with effect from August 4.
Consequently, the board has approved the appointment of Himanshu Kapania as the non-executive chairman of the company. He was earlier the managing director and CEO of Birla's Idea Cellular.
Kapania is a telecom industry veteran with 25 years of experience, including significant board experience in telecom companies globally. He has also served on the Global GSMA Board for two years and was chairman of the Cellular Operators Association of India (COAI) for two years.
The announcement comes few days after reports that Birla offered to hand over his stake in debt-laden Vodafone Idea to the government or to any other entity that the government may consider worthy to keep the company operational.
The telecom company had an had an adjusted gross revenue (AGR) liability of Rs 58,254 crore out of which the company has paid Rs 7,854.37 crore and Rs 50,399.63 crore is outstanding.
In a letter to cabinet secretary Rajiv Gauba on June 7, Birla -- who holds around 27 per cent stake in VIL -- said investors are not willing to invest in the company in the absence of clarity on AGR liability, adequate moratorium on spectrum payments and most importantly floor pricing regime above the cost of service.
Without immediate active support from the government on the three issues by July, the financial situation of VIL will come to an "irretrievable point of collapse," he wrote.
In September 2020, VIL had received approval from its board to raise up to Rs 25,000 crore. However, the company has not been able to raise the funds so far.
The company's gross debt, excluding lease liabilities, stood at Rs 1,80,310 crore as of March 31, 2021. The amount included deferred spectrum payment obligations of Rs 96,270 crore and debt from banks and financial institutions of Rs 23,080 crore, apart from the AGR liability.
Shares of Vodafone Idea continued to tumble as it settled 18.51 per cent lower at Rs 6.03 on the BSE.
(With inputs from agencies)

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Vodafone Idea board approves KM Birla's request to step down as non-executive director, chairman - Times of India
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