Vodafone Idea tumbles 5 pc on Birla's statement that firm may have to 'shut shop' if no relief given
Vodafone Idea's shares fell over 5 percent on Friday, spooked by its Chairman Kumar Mangalam Birla's statement that the telecom operator "will have to shut shop" if the government does not provide any relief. The stock slumped 5.34 percent to close at Rs 6.92. Intra-day, it hit a low of Rs 6.66 apiece on the BSE, trading 8.89 percent lower over the previous close.
On the National Stock Exchange (NSE), the scrip fell 5.48 percent to Rs 6.90 a unit. During the day, the scrip lost as much as 8.9 percent to Rs 6.65.
Over 51 crore shares of Vodafone Idea were traded on the NSE and more than five crores on the BSE.
Vodafone Idea Ltd, India's third-largest mobile service provider, will shut down if the government does not provide relief on the liability it faces in past statutory dues following a Supreme Court order, Birla said on Friday.
"If we are not getting anything then I think it is the end of the story for Vodafone Idea," Birla said at the HT Leadership Summit when asked about the future of Vodafone Idea in absence of a government relief on payment of Rs 53,038 crore dues.
Meanwhile, the BSE has sought a clarification from the telecom operator on this statement. Shares of Vodafone Idea have been on a bumpy ride for five trading sessions. The stock has lost over 11 percent on the BSE as well as the NSE since Monday. The telco's stock on Monday surged over 14 percent.
