Cash-strapped telecom major Vodafone-Idea has clarified that its Board is currently not considering any proposal for investment in the comping, a day after The Financial Times reported that internet giant Google could pick up a 5% equity stake in the firm.
Cash-strapped telecom major Vodafone-Idea has clarified that its Board is currently not considering any proposal for investment in the comping, a day after The Financial Times reported that internet giant Google could pick up a 5% equity stake in the firm. The telco in a filing to the market regulator said that the company constantly evaluates various opportunities for enhancing the stakeholders’ value. “As and when such proposals are considered by the Board of Directors of the Company warranting disclosures, the Company shall comply with the disclosure obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI Listing Regulation”),” it added.
Vodafone-Idea was asked to clarify after various media reports cited the The Financial Times report, which said that Google was in talks with Vodafone Idea to pick a 5% stake in the company, however, the talks were said to be in early stages. Vodafone-Idea’s share price surged as high as 35% on the bourses as investors rushed to pick the stock that has fallen over 50% in the last one year. Vodafone-Idea reiterated that it will comply with SEBI Listing Regulations and duly keep the stock exchanges informed of all the price-sensitive information.
The telecom firm, a joint venture between UK-based Vodafone and India’s Aditya Birla Group, has been struggling to stay afloat after the Supreme Court asked all telecom operators to pay their adjusted gross revenue dues (AGR). Vodafone-Idea has the largest amount pending under the AGR dues, totaling to over Rs 58,000 crore. Vodafone-Idea has so far paid around Rs 6,000 crore in dues and estimates its dues to be around Rs 21,000 crore.
India’s internet and telecommunications space has been witnessing immense growth and competition after the entry of Mukesh Ambani-led Reliance Jio. The three-way battle in the sectors has seen Vodafone-Idea drop to the third place recently with Bharti Airtel and Reliance Jio fighting for Supremacy. Jio has recently seen a slew of major investments from foreign investors, putting in a total of Rs 75,000 crore into the firm in less than a month’s time. Facebook is the biggest investor in Jio so far with a Rs 43,574 crore investment for a 10% equity stake.