If IANS be true Vodafone to exit India over losses

A buzz is making the headlines these days that the telecom company, Vodafone may leave India soon as the joint venture company, Vodafone-Idea face tremendous loss. The report is given by the news agency Indo-Asian News Service which is owned by Anil Ambani who is also the owner of Reliance Communications.

0
If IANS be true Vodafone to exit India over losses
1,145 Views

 Vodafone has been one of the major telecom companies in India for a long time. But in the recent scenario news of the company which collaborated with Idea in 2018 may have to leave the country. Sources say that Vodafone is ready to “pack up and leave any day now”. Vodafone has been losses in different spheres from losing lakhs of customers every month along with unstable market capitalization and a low stock market scene. As a result, it cannot take any risk of raising fresh funds. Recently, Vodafone-Idea asked for clarification regarding the apparent claim that it has approached its lenders for debt recast. The company has denied any such claim and told such claims to be fact less and incorrect. They also mentioned they have continued to pay their debts whenever they were due and has never requested any lender for debt recast or reworking payment terms.

View More: RBI indulges in gold sale to plug revenue shortfall for the first time in thirty years

Regarding the recent Supreme Court judgment, Vodafone has to pay Rs. 28,309 crore as Adjusted Gross Revenue within three months. The Company seemed worried about the decision. It replied to the judgment by saying, “Vodafone-Idea is extremely disappointed by the Hon’ble Supreme Court judgment on the Adjusted Gross Revenue case”. They added to it that they would be discussing matters with their legal advisers and take steps based on that. At most, it can involve a Review Application. The Company also mentioned how the judgment is detrimental for the overall telecom industry in India which is already under financial stress and going downhill. The Company was seen to request the Government to look into the matter and take necessary steps for the same. They said it requires billions of dollars to build a world-class network and because of judgments like these so many telecom companies have already exited the business.

View More: Whatsapp is not a safe place anymore: Journalists & activists under…

In the share market too, Vodafone is not doing great. Just after the verdict, Vodafone-Idea stock hit a 52 week low of Rs. 3.66 and traded at Rs. 3.86 on Wednesday morning. In spite of huge investments of more than billions, it’s Market Capitalization has been merely Rs 11,091 crore. Moreover, Vodafone-Idea mentioned that since the combination of Indus Tower, in which it holds 11.15 percent equity, with Bharti Infratel it has not been able to meet certain ends like DoT approval under the FDI regulations before the October 24. Finally, an agreement was reached among the parties and the target date was extended from October 24 to December 24. Hoping that the extra two months are beneficial for the Company. Though because of the fall in the share price of Bharti Infratel, Vodafone Idea will get a lower cash payment.

Reference links:

https://www.business-standard.com/article/news-cm/vodafone-idea-turns-volatile-on-buzz-vodafone-may-exit-india-119103100973_1.html


Summary
Article Name
If IANS be true Vodafone to exit India over losses
Description
A buzz is making the headlines these days that the telecom company, Vodafone may leave India soon as the joint venture company, Vodafone-Idea face tremendous loss. The report is given by the news agency Indo-Asian News Service which is owned by Anil Ambani who is also the owner of Reliance Communications.