Vodafone Idea is eagerly waiting for the Department of Telecommunications (DoT) to come out with a relief package for the telecom sector that might set things straight for the company. However, everyone, including the government, knows that the relief package isn’t alone going to ensure the survival of the company. According to an ET Telecom report, the government wants to understand the plans of the promoters of the company, which includes the Aditya Birla Group and the Vodafone group. Further, the government wants the promoters to infuse further capital in the company to see their commitment which is not a wrong thing to ask.
Vodafone Idea Promoters Lack of Interest Giving the Company Up
Both the promoters have expressed that they are not further willing to help Vodafone Idea in any financial capacity whatsoever. The promoters are just looking for an outside investor to tie up their money into the company to keep their risk exposure at the current levels and possibly reduce it in the near future by selling a stake of the company.
The telco had reported a loss of Rs 7,319 crore in the first quarter of FY22, which is more than the preceding quarter. As the government prepares a relief package for the sector, it seeks to understand the plans of the promoters. This will help the government in deciding whether the relief package is worth it or not.
Because with the relief package alone, the company won’t survive for long. It is only a short-term measure to let Vodafone Idea keep running. The main thing is to see what the company’s plans are for the next two years, which are going to be very crucial for its future.
The lack of interest that the promoters have shown in infusing any more capital into the company just doesn’t project any confidence for the outside world. It further makes it seem like the promoters don’t think the company’s worth it anymore.