Vodafone CEO Nick Read. PHOTO: BLOOMBERG
While the UK-based telecom major did not comment on partner Kumar Mangalam Birla’s offer to sell his stake in Vodafone
Idea (Vi), its chief executive officer Nick Read, on July 23, reiterated the company’s decision of not infusing further capital in Vi.
On the company’s plans to support Vi, which is struggling to raise fresh capital, Read, speaking during an investor conference call, said, “We as a group try to provide them as much practical support as we can, but I want to make it very clear, we are not putting any additional equity into India.” His comments came on the day the Supreme Court dismissed Vi’s application for recomputation of adjusted gross revenue
Vi has a debt of about Rs 1.8 trillion, including deferred spectrum obligations and AGR dues. The company had in last September announced a plan to raise Rs 25,000 crore, but new investors are not forthcoming in the absence of support measures from the government.
The company auditors have flagged concerns about the company’s ability to continue as a going concern due its inability to generate sufficient cash flow. “So, I mean, it is … a highly stressed situation, a difficult situation that they are trying to navigate,” Read told analysts. Vodafone
Group Plc merged with Idea Cellular in 2017 in a $23-billion deal and the merger was completed in August 2018. The company has suffered constant losses and is losing subscribers, too. Vodafone Group has already written off its investment in Vi.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.