Indian telecom operator, Vodafone Idea’s stock registered a surge in its price over 17%. Shares of Vodafone Idea closed at Rs 7.15 with a gain of 17.21 percent in a recent survey. The company’s stock has registered a rise after the Chairman of Aditya Birla Group (ABG) Kumar Mangalam Birla met with Telecom Minister Ashwini Vaishnav.
Birla met Vaishnav and told him about the challenges of the telecom sector. They together have appealed for government help to save Vodafone Idea, reported media. According to sources, the government is now mulling over some relief measures not just for the company, but for the entire sector.
Overall, the company had a total debt of Rs 1.91 lakh crore and it owns banks and financial institutions of Rs 234 billion. Cash and cash equivalents were Rs 9.2 billion. Birla had clearly said that it is difficult to run this company without government help.
Birla had said that the operations of Vodafone-Idea would be at an “irretrievable point of collapse” if it did not receive immediate and active support from the government. At the time of writing, the shares of Vodafone-Idea were trading 17.24 percent higher at Rs 7.14 on BSE.
However, Vodafone Idea has 27 crore users at present.