Friday, January 21, 2022
More

    Latest Posts

    Indian government to take stake in Vodafone Idea

    Vodafone Idea has approved a bailout plan to make the Indian government the largest shareholder and nationalized nearly 36% of the volatile carriers to prevent its collapse.

    The company, a joint venture between the British telecommunications group and the Adityaville La Conglomerate in India, has been lurking during the recent crisis and has questioned its survival.

    It bleeds market share to more funded rivals, including: Reliance JioOwned by Indian tycoon Mukesh Ambani, Billions of dollars in debt bill Payment of historical spectrum and other license fees from New Delhi.

    Vodafone Idea said Tuesday that its board had approved a bailout plan emerged by the government. last year Converting interest payable to Indian authorities into capital in return for delaying “adjusted gross income” and spectral membership fees by four years.

    If the government accepts the calculation, it will leave with a 35.8 percent stake. The holdings of other investors will be diluted to 28.5% for Vodafone Group and 17.8% for Aditya Birla.

    The stock price of Vodafone Idea on the Indian National Stock Exchange fell 14% on Tuesday morning to Rs 12.8 ($ 0.17).

    Analysts said plans to make the Indian government’s Vodafone Idea the largest owner are likely to stop its immediate collapse.New Delhi’s intervention happened even when the authorities worked to sell the shares of state-owned enterprises, such as making losses. Carrier Air India..

    Rescue is also provided by India’s telecommunications sector Effective duopoly While protecting the bank from a surge in bad debts if the company goes bankrupt. Vodafone Idea’s total debt totals nearly Rupees 2 trillion ($ 27 billion).

    However, it is unlikely to change Vodafone Idea’s dark business outlook. Losing companies have destroyed almost 10% of their subscriber base over the past year, reaching 269 million in October, the latest month for which data was available.

    Analysts at ICICI Bank predict that operators will report the loss of an additional 2 million subscribers in future results for the quarter ending December.

    India’s telecommunications sector has been in turmoil since 2016 after Ambani launched Jio and used bottom prices to gain market share. The spark of price competition..

    There were about 12 operators in this sector before the financial burden caused a wave of withdrawal and consolidation. Vodafone Idea Products 2018 merger Between Aditya Birla and Vodafone’s struggling units, it rarely turned the business around.

    Kumar Mangalam Birla, Head of the Aditya Birla Group, has resigned as chair of Vodafone Idea. In August After warning that the company is approaching an “irreparable collapse point”.

    Surviving operators then announced plans to raise prices to improve the sector’s financial position and raise prices by about 20 percent at the end of last year.

    rival Bharti AirtelIs in a much stronger financial and business position and announced last week that it would choose not to convert the interest owed to the government into shares, but instead pay a spectrum and adjusted gross income membership fee. .. According to regulatory data, Bharti Airtel’s subscriber base increased from 330m in the previous year to 354m in October.

    #techAsia newsletter

    Your important guide to the billions that have been created and lost in the Asian Tech world. Exclusive news from FT and Nikkei, vivid analysis, smart data, a carefully selected menu of the latest technology topics

    Sign up here with just one click

    Indian government to take stake in Vodafone Idea Source link Indian government to take stake in Vodafone Idea

    The post Indian government to take stake in Vodafone Idea appeared first on California News Times.

    Source link

    Latest Posts

    Don't Miss

    Stay in touch

    To be updated with all the latest news, offers and special announcements.