Will the government sell its stake in Vodafone Idea? Know what the company said
Vodafone Idea Ltd. (VIL) said that it is up to the Centre to decide what to do with its stake in the company. The company has nothing in its hands in this regard. The company has said this amid reports that the government has sought suggestions from some government funds to possibly sell its stake in the telecom company. During the first quarter financial results of Vodafone Idea, Chief Executive Officer (CEO) Akshay Mundra said in a conference call that after the tariff hike, some of the company’s customers are moving to BSNL. The company is monitoring the situation.
The government is free to take its own decision
However, he believes that given Vodafone Idea’s 4G coverage, quick decisions to port out based on tariff hikes may not be sustainable eventually. On media reports that the government may be exploring whether the sovereign wealth fund would be interested in taking its stake in the company, Mundra said, “We have not had any discussions with the government on this. All we have to say is that as a public shareholder, they are free to take a decision regarding their investment.”
Government is in favor of keeping 3 private companies
He said, “The reform package was announced with the objective of providing support to the company and the government has clearly been in favour of the three private companies in the sector. Converting the dues into equity was a means of supporting the company’s books.” In response to a question on the ground level impact of the recent tariff hike, he said that although it is too early to draw a conclusion about this, the fact is that this time the initial price hike has been minimal, so the rate of customer attrition should be low.
How was the company’s result
Vodafone Idea released its financial results on Monday. According to this, the debt-ridden telecom company’s net loss in the first quarter of the current financial year has come down to Rs 6,432.1 crore. The company’s loss has reduced due to the increase in the number of 4G customers. The company’s revenue in the June quarter fell by 1.3 percent on an annual basis to Rs 10,508.3 crore.
