Kumar Mangalam Birla is not the non-executive Chairman of Vodafone Idea Limited (VIL) anymore. Mr Birla stepped down from the position effective August 4, 2021, after the closing of business hours. Mr Himashu Kapania, current a non-executive Director of the company will be replacing Mr Birla as the non-executive Chairman.
For the unaware, Mr Kapania has been in the telecom industry for more than 25 years and has served as a board member for significant telecom companies globally. Mr Kapania has also served as the Chairman of the Cellular Operators Association of India (COAI) for two years and further served on the Global GSMA Board for two years. Vodafone Idea has further appointed Mr Sushil Agrawal as an Additional Director (non-executive and non-independent) from August 4, 2021.
BSE Has Sought Clarification from Vodafone Idea Limited
The Bombay Stock Exchange (BSE) has further sought clarification from Vodafone Idea on the news article that came from Business Standard which was titled ‘Birla tells govt he is willing to give up promoter stake in Vodafone Idea’. What exactly is the exchange looking for is a little unclear. But a reply from the company on the matter is still awaited.
For the unaware, the report from Business Standard stated that Birla is willing to sell his stake in the Vodafone Idea Limited (VIL) to the government to ensure that the company keeps on providing services.
The stepping down of Kumar Mangalam Birla is a huge decision. Vodafone Idea can still turn things around and make itself a fortune in India’s massive market with more than a billion people. Vi needs to narrow its focus on improving network coverage and it can easily have high average revenue per user (ARPU) customers on its portfolio which will help it see through the tough time. Further, if Vi shows consistent performance for a few quarters, it won’t be long before a new major investor jumps into the company.