NEW DELHI: In one of the most direct statements on Vodafone Idea ’s struggling telecom business , promoter Kumar Mangalam Birla on Tuesday said that the ailing company’s revival is “around the corner” and dismissed doubts over the success of the turnaround plans.
“We have been written off in the past as well… we will unveil our plans in the next six months,” Birla said on the sidelines of the India Mobile Congress (IMC) when asked about doubts in a section of the investor community about revival efforts.
Vodafone Idea had seen its shares crash after the Supreme Court last month rejected a curative petition filed by the company — and Bharti Airtel — over recalculation of the AGR dues . The company will need to cough up nearly Rs 70,000 crore to the department of telecom due to the decision, and its total outstanding to the exchequer stands at around Rs 2.1 lakh crore that includes spectrum payments and license fee.
Birla said that plans and investments are in place to improve the company’s network and standing in the business.
He said that the company has raised Rs 18,000 crore through a follow on public offer (FPO) that was oversubscribed seven times. “This response was an emphatic endorsement of the potential of the Indian telecom sector… The fundraiser enabled the company to kickstart its capex cycle again.”
After the stock hammering post the SC judgement, Vodafone Idea had announced total investments of up Rs 55,000 crore into the business, including Rs 30,000 crore on network equipment purchase from Nokia, Ericsson, and Samsung.
“These are all key steps that will place the company on a more secure footing and ensure that it remains dynamic and competitive… I am a firm believer in the transformative power of India’s telecom sector and I see it as a bridge to a more connected, empowered and prosperous area.”
“We have been written off in the past as well… we will unveil our plans in the next six months,” Birla said on the sidelines of the India Mobile Congress (IMC) when asked about doubts in a section of the investor community about revival efforts.
Vodafone Idea had seen its shares crash after the Supreme Court last month rejected a curative petition filed by the company — and Bharti Airtel — over recalculation of the AGR dues . The company will need to cough up nearly Rs 70,000 crore to the department of telecom due to the decision, and its total outstanding to the exchequer stands at around Rs 2.1 lakh crore that includes spectrum payments and license fee.
Birla said that plans and investments are in place to improve the company’s network and standing in the business.
He said that the company has raised Rs 18,000 crore through a follow on public offer (FPO) that was oversubscribed seven times. “This response was an emphatic endorsement of the potential of the Indian telecom sector… The fundraiser enabled the company to kickstart its capex cycle again.”
After the stock hammering post the SC judgement, Vodafone Idea had announced total investments of up Rs 55,000 crore into the business, including Rs 30,000 crore on network equipment purchase from Nokia, Ericsson, and Samsung.
“These are all key steps that will place the company on a more secure footing and ensure that it remains dynamic and competitive… I am a firm believer in the transformative power of India’s telecom sector and I see it as a bridge to a more connected, empowered and prosperous area.”
You may also like
Shah Rukh's film will be released soon
Trump and Harris is now 50/50 in Nate Silver's latest prediction
When will England unveil Thomas Tuchel as new manager after agreeing contract
UK considering EU-style rules on common phone charging cables - meaning everyone would have the same
'Beta, Aunty Ko Batao Ki Papa Tumhari Madam Ke Saath Ghoomte Hain': Couples Using Children As Tools To Settle Scores With Each Other
Navi Mumbai: Cyber Police Arrest 32-Year-Old Key Accused In Multi-State Loan Fraud Gang In Delhi; 4 Accomplices Still At Large
Rajkummar Rao and Tripti Dimri's film is such that the makers are apologizing
Jamie Carragher's opinion of Thomas Tuchel speaks volumes after England appointment
UAE go down fighting to Uzbekistan in World Cup qualifiers
Baby bathtime warning for parents as 'safety device' could be raising risk of drowning
Guitarist Jake E. Lee Shot Multiple Times In 'Random' Vegas Attack While Walking His Dog
BBC Doctor Who's future up in the air amid doubt over Ncuti Gatwa's return after strange edit
RG Kar tragedy: Indian Medical Association holds hunger strike
Inside Britain's £400m 'newest town' - featuring mega 20,000 homes, new schools and big parks
Bhopal ₹1814 Crore Drug Haul: NCB Struggles To Trace Info On Moveable, Immoveable Property Of The Three Accused
Will Ranbir Kapoor and Shraddha Kapoor be a part of Dhoom 4?
Lorry smashes into two cars at junction but nobody's sure who to blame
Five everyday things highly intelligent people find exhausting, according to experts
Assam Jamiyat Ulama Chief Badruddin Ajmal Demands Return of Waqf Properties
James Bond could have been played by Lord Lucan, claims 007 expert