Kumar Mangalam Birla Reappointed As Additional Director To Vodafone Idea Board

Aditya Birla Group Chairman Kumar Mangalam Birla is reappointed as the Additional Director to the board of debt-ridden Vodafone Idea. He will take Krishna Kishore Maheshwari's place who resigned from the company recently.

The telecom firm announced the departure and reappointment of additional director though two different regulatory filings on Thursday. As per first one, Maheshwari tendered his resignation as a Non-Executive Director of the company citing personal reasons.

In a subsequent filing, the company notified Birla's return to the board of debt-ridden Vodafone Idea Ltd (VIL) as an additional director in a non-executive and non-independent role. Birla had stepped down from the board in August 2021 from his role as non-executive chairman of the company.

Aditya Birla Group holds around 18% stake in Vodafone Idea, while Vodafone Group has a stake of 32% as promoters of the company. Birla in the past had offered to give up his stake in the company.

Vodafone India is reeling under a huge debt of Rs 2.22 lakh crore, comprising deferred spectrum payment obligations of Rs 1.39 lakh crore and adjusted gross revenue liability of Rs 69,910 crore that are due to the government.

The debt from banks and financial institutions stood at Rs 13,190 crore as on December 31, 2022. The government is now the biggest shareholder in the company after it allowed Vodafone Idea to convert dues of around Rs 16,000 crore into equity. The development took place after Birla assured Telecom Minister Ashwini Vaishnaw that he would make arrangements to fund the company and run it successfully.

The price of Vodafone Idea Ltd stock rallied by 7.76% to Rs 6.53 per share during the day. Its 52-week is at Rs 10.23 per share and 52-week low is at Rs 5.70 per share.