homemarket Newsstocks NewsVodafone Idea shares gain 10% after Kumar Mangalam Birla returns to the board after 20 months
Vodafone Idea shares gain 10% after Kumar Mangalam Birla returns to the board after 20 months
Vodafone Idea reported a net loss of Rs 7,990 crore for the third quarter that ended on December 31, 2022.
Shares of debt-ridden telecom operator Vodafone Idea Ltd (VIL) surged nearly 10 percent in intraday trade on Friday after Kumar Mangalam Birla returned to the company's board after 20 months.
On Thursday, Vodafone Idea Ltd announced that it has appointed Kumar Mangalam Birla as a non-executive and non-independent director of the company with effect from April 20, 2023. Birla is the chairman of the Aditya Birla Group, which owns a 32 percent stake in Vodafone Idea Ltd.
The move is subject to approval from shareholders.
In February 2023, the government cleared the conversion of over Rs 16,133 crore interest dues of Vodafone Idea into equity. Equity shares of the face value of Rs 10 each will be issued to the government at the same price.
The relief for the telecom player came as part of the reforms package announced by the government in September 2021.
Birla reiterated to CNBC-TV18 last week that Vodafone Idea will be launching its 5G services soon. Birla had said this in an earlier interview in October 2022 but a timeline has not been shared yet.
Vodafone Idea has been losing subscribers steadily as its competitors Bharti Airtel and Reliance Jio have launched 5G services already in the country. Since April 2021, the company has lost over 4.24 crore subscribers. The 12-month period ending December 2022 alone saw subscriber-base erosion of 2.42 crore.
The company reported a net loss of Rs 7,990 crore for the third quarter that ended on December 31, 2022.
Shares of Vodafone Idea are trading 6.6 percent higher at Rs 6.45. The stock is up 13 percent from its 52-week low of Rs 5.7.
(Edited by : Rukmani Krishna)
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