In the telecom business these days, there is speculation of UK company Vodafone preparing to exit its business from India. An email sent by IANS to a Vodafone Idea spokesperson in India was asked to be sent to Ben Padovan, Group Head of Corporate Communications. Vodafone Group has not yet answered questions about this.
Operating loss is increasing
There has been speculation in the telecom industry that Voda fone wants to exit its Indian business due to the continuous increase in operating losses in the joint venture company Vodafone Idea, the company leaving millions of subscribers every month and the lack of market capitalization.
The company said the news of debt restructuring wrong
Vodafone Idea issued a clarification on the report of the company contacting its lenders for debt restructuring. It says, ‘There has been a report in the media that Voda fone Idea has approached its lenders for date restructuring. This report is completely false. We have not contacted any lenders for this. We are paying all our debts on time. ‘
Supreme Court’s decision on AGR increased the burden on the Vodafone company
The recent decision by the Supreme Court on the adjusted gross revenue (AGR) of telecom companies has also dealt a major blow to Vodafone Idea. The company has to pay around Rs 28,309 crore within three months. After the court’s decision, Voda fone Idea’s stock had fallen to a 52-week low of Rs 3.66. On Wednesday, it fell 1.4% to close at Rs 3.81 on the BSE.
Company’s market cap of 11 thousand crores
The company’s market capitalization is only Rs 11,091 crore, while its investment is in the multi-billion dollar range. In its response to the Supreme Court’s decision on AGR, the company said, ‘Voda fone Idea is deeply disappointed by the Hon’ble Supreme Court’s decision on adjusted gross revenue. We will study the verdict with our legal advisors. ‘
Vodafone also got a shock in Indus Towers
Voda fone Idea has also received a setback for the merger deal with Bharti Infratel of Indus Towers. The company holds 11.15% stake in Indus Towers. Vodafone Idea said last week that it is not possible to meet the conditions, including the approval of the Telecom Department (DoT), under FDI regulations by the deadline of 24 October. The parties involved in this deal have extended this date to 24 December by making an agreement. Vodafone Idea will get a lower payment of cash in this deal due to the reduction in the share price of Bharti Infratel.