Hopeful of Govt Support
The Chairman of the company, whose name is Himanshu Kapania, has written a letter to all the shareholders and said in it that VI (Vodafone Idea) seeks the support of the Government of India in delivering reasonable return on all its investments and properly addressing the major challenges of the telecom sector. Hoping a lot.
Kapania took over from Kumar Mangalam Birla on August 4, days after the Supreme Court rejected outright all his applications to make correct corrections in the calculation of adjusted gross revenue arrears.
The telecom company operating its performance has been hit a hard by intense of the competition, very low tariffs and nearly 1.9 trillion Rupees in the debt, leaving little surplus to upgrade the VI network.
VI company has sought an extension of one year on spectrum dues and the company is pitching for the right decision on the floor price on the telecom.
As the industry continues to remain under immense financial stress, your Company also expects that the Government of India will provide all necessary assistance to address all the structural issues being faced by the sector.
With the history of providing mobile network services to India for about 25 years, your company is highly expected that the Government of India will support their efforts to give some good and reasonable return on their huge investment,
VI Wrote a letter
VI Company has written this letter, and which is a part of the latest Annual Report of the Company. and He said the company would continue to focus on improving its network as it awaits the government’s decision.
In the month of September last, the Board of VI Company had announced this plan to raise funds to the tune of about Rs 25,000 crore to meet its debt obligations. and while it was initially planned to complete fund-raising in early 2021, and VI Company has been a completely unable to close a deal.
In the month of June, Birla made this offer of his stake in VI (Vodafone Idea) to the Indian government of any domestic entity to keep the company afloat. and Birla holds around 27 per cent stake in Padi and while Vodafone Group plc of UK holds around 44 per cent.
Both the promoters have also taken a decision not to infuse any fresh capital in the company of VI (Vodafone Idea). and Rating agency ICRA said that they can give relief to the company struggling with the help of the Government of India.