If the government doesn’t provide relief that the company has sought, Vodafone Idea will have to be shutdown, said its Chairman Kumar Mangalam Birla on December 6. This was followed by a statement in November by Vodafone Group CEO Nick Read that the company may head for liquidation of its India business if the government does not ease spectrum fees. Read had called the situation ?critical, if you don?t get the remedies being suggested.?
The company will have to opt for insolvency route in the absence of relief. Birla said the Aditya Birla Group will not invest any money in the company in the absence of relief from the government. “There is no sense that good money should follow bad money,” he stated.
The Vodafone Idea?s stock has zoomed nearly three folds in the past one month after touching a 52-week low of ?2.40 on NSE on 15 November. The stock has gained momentum on the announcement of a significant tariff hike effective from December.
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