Himanshu Kapania steps down as Chairman
Mumbai, NFAPost: Himanshu Kapania stepped down as Vodafone Idea Chairman. Effective August 18, Kapania will no longer serve as Voda Idea Chairman and will be a non-executive director on the board of the company. Ravinder Takkar, who will be stepping down as Vodafone Idea CEO, effective August 18, will be serving as Chairman of the VIL Board, effective 19th August 2022, upon the board’s unanimous vote.
Kapania was appointed Chairman last year after promoter Kumar Mangalam Birla of Aditya Birla Group stepped down from the position on August 4, 2021. Birla’s stepping down from the board came after a letter from Aditya Birla Group to the Department of Telecommunications was leaked, urging immediate action from the government after the company’s survival was a going concern.
Vi’s tumultuous changes in leadership come at a time when the company is still trying to raise funds from investors worth Rs 20,000 crore. Vodafone Idea was unable to close the fundraise ahead of the 5G auctions, which experts note is the reason behind its muted participation versus the other two telecom operators Reliance Jio and Bharti Airtel.
In the recently concluded 5G auctions, the company purchased 5G spectrum worth Rs 18,799 crore, purchasing 3.5GHz and 26GHz in priority circles, 17 circles for 3.5GHz and 16 circles of mm-wave. As of Q1 FY23, the company’s net worth stands at negative Rs 69,260.5 crore, with the net debt for the company standing at Rs 1,99-lakh crore. The existing debt payable by 30 June 2023 is Rs 6,953 crore.
As per the company’s audit notes the group’s ability to continue as a going concern is dependent on raising additional funds through debt and investors as and when it is required. Vodafone Idea’s limited participation in the recently concluded 5G auctions could marr investor confidence according to experts.
