Govt Has No Intention To Run Vodafone Idea, Says CEO Ravinder Takkar

Shares of Vodafone Idea on Wednesday jumped over 8 per cent in early trade as the stock staged a comeback from Tuesday’s crash

Ravinder Takkar, MD and CEO of Vodafone Idea, said the government had made it clear they don’t wish to take over operations of the company. Image: Getty

New Delhi: The government has no intention to run Vodafone Idea or in appointing a board member, said the company’s top executive a day after the telecom firm agreed to convert interest on deferred statutory dues.

Ravinder Takkar, managing director and chief executive officer of Vodafone Idea, at a press conference on Wednesday, said, “The government is very clear. They want us to run the company. They want the promoters to run the company. I’m saying that based on personal conversation with the government.”

Quoting Takkar, PTI said, “The government had made it clear they don’t wish to take over operations of the company; we do not expect any change in their position. We expect the entire process to conclude in coming months.”

Vodafone Idea on Tuesday opted for conversion of government dues into equity. The Centre will own 35.8 per cent in in the financially-stressed telecom major. This makes the government the single-largest shareholder in Vi, a joint venture between the Aditya Birla group and UK-headquartered Vodafone.

Meanwhile, shares of Vodafone Idea on Wednesday jumped over 8 per cent in early trade as the stock staged a comeback from Tuesday’s crash. As of 12.30, Vodafone Idea was up 10.17 per cent at Rs 13.00.

The company’s shares had tanked almost 21 per cent on Tuesday after its board approved a rescue plan that gives 36 per cent stake to the government in lieu of dues and makes it the largest shareholder in the telecom operator.

Apart from Vodafone Idea, the government is picking up a stake in Tata Teleservices. It would also own 9.5 per cent in Tata Teleservices (Maharashtra) Limited through the same route, according to announcements made on Tuesday.

The latest development implies government holding in four telecom companies in the country, including two state-owned firms Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL).