Aditya Birla Group Chairman Kumar Mangalam Birla has returned to the board of debt-ridden Vodafone Idea as an additional director in a non-executive and non-independent role, the telecom firm said on Thursday.
Birla stepped down from the board of Vodafone Idea Ltd (VIL) in August 2021 for his role as non-executive chairman of the company. “…the Board of Directors of the Company has, at its meeting held today, appointed Mr Kumar Mangalam Birla, as an Additional Director (Non-Executive and Non-Independent) with effect from 20 April 2023,” VIL said in a regulatory filing. Aditya Birla Group, one of the promoters, holds around 18 per cent stake in VIL and Vodafone Group around 32 per cent.
Birla in the past had offered to give up his stake in VIL. VIL, at present, is reeling under a debt of Rs 2.22 lakh crore, comprising deferred spectrum payment obligations of Rs 1.39 lakh crore and adjusted gross revenue liability of Rs 69,910 crore that are due to the government. The debt from banks and financial institutions stood at Rs 13,190 crore as on December 31, 2022. The government is now the biggest shareholder in the company after it allowed VIL to convert dues of around Rs 16,000 crore into equity. The development took place after Birla had assured Telecom Minister Ashwini Vaishnaw that he would make arrangements to fund the company and run it successfully.
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