New Delhi: Kumar Mangalam Birla on Wednesday resigned as a non-executive chairman and director of the board of the main vodafone idea of telecommunications as a battle company to survive amid severe financial pressures.
Birla, who has recently looked for an urgent government package to burn a company that is full of debt, will be replaced by a trusted hand and Himanshu telecommunication veteran when, who has been appointed as a non-executive chairman.
When was entered as a candidate for Aditya Birla which has around 27% of shares in the company.
“The Board of Directors of the idea of Vodafone has received the request of Birla Kumar Mangalam to resign as a non-executive director and non-executive board chairman from August 4, 2021,” the company said in the submission of regulations.
In addition, Sushil Agarwal, an Aditya Birla Group nomination, has been designated as an additional director (non-executive and non-independent) with the effect of Wednesday.
Apart from the upper level changes, the problem for Vodafone’s idea continues and increases with each day passed.
The company, which is the third largest telecommunications company in the country, has provided a clear indication that it may not be in the capacity to serve bank debt or make government payments if the center does not enter with an incentive package.
Birla’s appeal, by letter to the cabinet secretary of Rajiv Gauba, pointing to the last effort to save the company ahead of the possibility of default.
Vodafone, another partner in the company, said it would not invest further through equity.
Vodafone accommodates around 44% in a sick telecommunications company that is sick.
The news has sent the company’s stock price to fall.
On Wednesday, it fell 18.5% again to close at Rs 6 in BSE, when Sensex rose 1% again to close at a high record.
It has crashed almost 30% over the past few days.
Km Birla Down as Chair of the Vodafone IDE
