Ground Report | New Delhi: How did Rs 2,700 crore disappear; Telecom service company Vodafone Idea Limited (VIL) lost its market cap of Rs 2,700 crore in a single day on Tuesday after a letter surfaced. The company’s chairman Kumar Mangalam Birla wrote a letter to Cabinet Secretary Rajiv Gauba in June, after which the company’s capital has registered such a big decline.
According to the report of Telegraphindia, in the letter written in June, Birla had proposed to sell a 27.66% stake of this debt-ridden company to the government so that VIL could continue. He wrote in the letter that the financial condition of VIL is getting “faster and worse”. Despite this ‘every effort is being made to improve operational efficiency but ‘Rs 25,000 crore is required to keep VIL running and repay the government amount’.
He had said that without the support of the government, by July 2021, the financial position of VIL would reach an irreversible state. Along with this, he had said that understanding his responsibility towards 27 crore Indians, he proposes to transfer the ownership.
How did Rs 2,700 crore disappear
It was to come to the fore that on Tuesday, the stock of VIL fell more than 10% in the stock market and remained at the lowest level in 52 weeks. VIL currently owes Rs 50,399.63 crore to the government, out of which it has paid Rs 7,854.37 crore.
Birla warned of a “growing crisis” and his 27.66 percent stake in 27 troubled telecom companies may be deemed eligible by any public sector/government/domestic financial entity, or any other government-(VIL) to continue For. “
Aditya Birla Group Chairman stated that despite “all possible efforts to improve operational efficiency”, the financial position of VIL has “accelerated deteriorating” and “the ability to manage VIL activities and pay regulatory/government debt”. 25,000 crores is required for this”. “Without the immediate assistance of the government…by July 2021…the financial position (reach) of VIL will reach an irreparable point” of 270 million Indians associated with VIL”.