Kumar Mangalam Birla has made his comeback in the Indian telecom giant Vodafone Idea (Vi). It is worth noting that the Aditya Birla Group (ABG) has a significant stake in the cash-strapped Vi, and Kumar Mangalam Birla (KMB) is the Chairman of ABG. In a recent filing at the stock exchanges, Vi said that the company's Board of Directors have appointed KMB as an additional director (non-executive and non-independent) with effect from April 20, 2023.
Back in 2021, when things were not looking good for Vi at all, KMB decided to step down as the chairman of the company. The decision followed with Vi's stock plummeting to a 52-week low figure of Rs 4.55 apiece on the Bombay Stock Exchange (BSE). The comeback of KMB in Vi in an official capacity could be a good thing.
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The telco is struggling to keep things tight as its finances and business has been on a downtrend for several consecutive quarters now. The telco needs successful fundraising to turn things around. Vi also has to increase tariffs to boost average revenue per user (ARPU), but that also comes with the risk of higher subscriber churn rate.
In a filing, Vi said, "Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that based on recommendation of Nomination and Remuneration Committee, the Board of Directors of the Company has, at its meeting held today, appointed Mr. Kumar Mangalam Birla, as an Additional Director (Non-Executive and Non-Independent) with effect from 20 April 2023."
