Vodafone Idea share price tanks over 24% as Kumar Mangalam Birla steps down as chairman

With today's fall, Vodafone Idea stock has tanked 37 per cent in two days.

Vodafone Idea share price tumbled over 24 per cent to Rs 4.55 apiece, a 52-week low, on BSE, after the telecom company announced that Kumar Mangalam Birla will step down as non-executive director and non-executive chairman. These changes have come into effect from the close of business hours on 4 August 2021. The board has unanimously elected Himanshu Kapania, currently a Non-Executive Director, as the Non-Executive Chairman. With today’s fall, Vodafone Idea stock has tanked 37 per cent in two days. The telecom stock has been reeling under pressure ever since Kumar Mangalam Birla offered to give up his stake in the company to any public sector, government, or domestic financial entity which can keep the company as a going concern.

Check live prices: Vodafone Idea

Vodafone Idea stock had hit a record low of Rs 2.61 apiece in November 2019. In traded volume terms, 9.28 lakh shares have exchanged hands on BSE, while 108 crore units on NSE. Kapania, a nominee of the Aditya Birla Group, is a telecom industry veteran with 25 years of experience. Currently, he is the Chairman of the FICCI Council on Telecom, Electronics and Digital Economy. Further, based on the recommendation of the nomination and remuneration committee, the board has appointed Sushil Agarwal, a nominee of Aditya Birla Group, as an Additional Director (Non-Executive and Non-Independent) with effect from 4 August 2021, the company said in a BSE filing.

Also read: Voda-Idea collapse a warning to investors

On 23 July 2021, the Supreme Court dismissed the company’s petition for correction in the arithmetical errors in calculating VIL’s AGR dues. The Department of Telecommunications (DoT) has pegged VIL’s AGR dues at Rs 58,254 crore, while the company has self-assessed it at Rs 21,533 crore. So far, the company has paid Rs 7,854 crore. The Aditya Birla Group holds a 27.66 per cent stake in Vodafone Idea. The other partner in the firm is Vodafone Plc, which has around a 44 per cent stake in the company.