Vodafone Idea shares surge 10% as KM Birla rejoins board

Vodafone Idea shares surge 10% as KM Birla rejoins board

Vodafone Idea Shares Surge as Kumar Mangalam Birla Returns to Board as Additional Director

On April 21, shares of Vodafone Idea, the struggling Indian telecom company, experienced a 10 percent surge in early trading after Kumar Mangalam Birla made his return to the company’s board as an additional director. Birla had previously resigned from his position as chairman in 2021 amid the company’s financial crisis. This departure caused Vodafone Idea’s shares to plummet to a 52-week low of Rs 5.70.

However, the market reacted positively to Birla’s comeback, with a significant surge in trading volumes. As of 10:26 AM, shares of Vodafone Idea were trading at Rs 6.50, up 7.44 percent on the National Stock Exchange. Around 18 crore shares of the company had already exchanged hands on the exchanges, which is significantly higher than the one-month daily traded average of nine crore shares.

Vodafone Idea has been struggling financially for a while, consistently losing market share. Prior to the conversion of nearly $2 billion of dues into equity by the Indian government in February, the company had a net debt of Rs 223,000 crore ($27.18 billion), which made the government its largest shareholder.

In February 2021, the Indian government implemented a bailout plan for telecom companies facing financial distress. Under this plan, companies can convert their interest on deferred adjusted gross revenue owed to the government into equity.

About Vodafone Idea:

Vodafone Idea, with headquarters in Mumbai and Gandhinagar, is an integrated GSM operator in India that provides 2G, 3G, 4G, 4G+, VoLTE, and VoWiFi services across the country.

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