Vodafone Idea or VI limited is in the news. Crores of shares have already exchanged hands.
Kumar Mangalam Birla the Chief at Aditya Birla has stepped down as non-executive Chairman from Vodafone Idea.
A letter "reportedly" penned by Birla is floating the rounds. The letter states that Birla was offering his stake worth crores in VI to any institution for bringing it back to business.
The letter also requests the Department of Telecom for help. Doesn't that sound like an SOS call!
Sagging funds and the AGR outcome suggests Vodafone Idea is on death-bed. From here, only a magician and some help from the government may help revive this company. Should this enterprise wither away it may be a far more painful outcome than businesses that have shutdown in the Indian telecom sector.
India's telecom sector has seen at least 16 telcos getting acquired or turning bankrupt since 1995. Besides price-sensitivity, bad strategies and reports of scam have made it look like a touch-me-not of sorts. Here is a look at five telecom companies that went bust. And, some learning for Vodafone Idea.
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Image: Sify Finance
Text: Sify, Finance Desk