New Delhi, Jan 12 (PTI) Shares of Vodafone Idea rallied nearly 9 per cent on Wednesday after facing severe drubbing in the previous trade. The stock jumped 8.47 per cent to settle at Rs 12.80 on BSE. During the day, it gained 12.71 per cent to Rs 13.30.
On NSE, it rallied 8.89 per cent to close at Rs 12.85.
Shares of Vodafone Idea (VIL) on Tuesday tumbled nearly 21 per cent after the debt-ridden firm announced converting about Rs 16,000 crore interest dues liability payable to the government into equity.
A day after Vodafone Idea Ltd opted to convert interest on dues to government equity, its CEO on Wednesday said the government had made its position amply clear that it does not want to run the telco, and added that existing promoters are fully committed to managing and running the company’s operations.
Vodafone Idea on Tuesday announced its decision to opt for converting about Rs 16,000 crore interest dues liability payable to the government into equity, which will amount to around 35.8 per cent stake in the company.
If the plan goes through, the government will become the biggest shareholder in the company which is reeling under a debt burden of about Rs 1.95 lakh crore.
VIL Managing Director and CEO Ravinder Takkar told reporters in a virtual briefing that there is no condition in the Telecom Department’s letter on equity conversion option, which allows for board seats for the government. The existing promoters are fully committed to managing and running the company’s operations, he asserted.
“In all of our interactions with the government leading up to the package and even after the announcement of the package, it has been clearly stated by the government that they do not want to run the company. They do not have the desire to take over operations of the company… They want three private players in the market, they do not want duopoly or monopoly,” VIL CEO said.
The government has “made it clear they want promoters of this company to run it going forward”, he said, adding that VIL expects no change in their position. PTI SUM SUM RUJ RUJ
