Liquidation of Voda-Idea may mean Rs 1.7-trillion hit for shareholders

A collapse of the mobile operator could translate into total loss of nearly Rs 44,000 crore for the AV Birla group

Vodafone Idea
The mobile operator is liable to pay Rs 28,300 crore to the government in accordance with the Supreme Court judgment on AGR of telecom operators

Shareholders of Vodafone Idea will lose Rs 1.68 trillion of their equity investment in the event of liquidation under the burden of mounting financial liabilities. Of this, nearly Rs 99,000 crore is the cumulative equity investment by the company shareholders, including the AV Birla group and Vodafone Plc, over the years, and the balance is the reinvested earnings of the company.  The equity investment includes the firm’s recent rights issue, which resulted in the shareholders putting in fresh equity capital worth Rs 25,000 crore. Banks had an exposure of Rs 1.25 trillion ...