Internal discussions moved towards stake sale after the promoters were “unsuccessful” in raising the required funds from financial investors (Image Source: Reuters)
Vodafone Idea share price tumbled over 16 percent intraday on August 4 after Vodafone Chief Executive Officer Nick Read said the telecom major will not be infusing fresh equity into debt-ridden Vodafone Idea (Vi).
Read made the comments during a conference call with investors on July 23, Business Standard reported.
"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," he said, as quoted by the publication.
Also read: Vodafone CEO rules out fresh equity infusion into Vodafone Idea
On August 3, CNBC-TV18 reported that Aditya Birla Group Chairman Kumar Mangalam Birla has written to the government that he is ready to hand over the company's stake in Vodafone Idea to a government entity.
The billionaire businessman made the offer in June in a letter to Cabinet Secretary Rajiv Gauba.
According to official data, VIL had an adjusted gross revenue (AGR) liability of Rs 58,254 crore out of which the company has paid Rs 7,854.37 crore and Rs 50,399.63 crore is outstanding.
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In the letter, Birla, who holds around a 27 percent stake in VIL, said investors are not willing to invest in the company in the absence of clarity on AGR liability, an adequate moratorium on spectrum payments and most importantly floor pricing regime above the cost of service.
The stock was trading at Rs 6.17, down Rs 1.23, or 16.62 percent. It has touched a 52-week low of Rs 6.03. It has touched an intraday high of Rs 7.30 and an intraday low of Rs 6.03.
The scrip was trading with volumes of 202,204,009 shares, compared to its five day average of 93,684,280 shares, an increase of 115.84 percent.