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 Kapadia as the non-executive chairman of the company.
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.
Shares of Vodafone Idea continued to tumble as it settled 18.51 per cent lower at Rs 6.03 on the BSE.