Vodafone Idea shares jump over 3% after KM Birla returns as non-executive chairman

The shares of Vodafone Idea gained as much as 3.2% to their day's high of Rs 11.15 on the BSE on Wednesday after the company named billionaire industrialist Kumar Mangalam Birla as its non-executive chairman, around five years after he resigned from the same role in the telecom giant amid financial stress.

In an exchange filing released on Tuesday, Vodafone Idea announced that its board of directors accepted the request of veteran Ravinder Takkar to step down as the non-executive chairman of the board, effective immediately. He will continue to remain a non-executive director at the company, and was appointed as the non-executive vice chairman.

Birla meanwhile will immediately take over as the non-executive chairman of telecom giant’s board. He was already serving as a non-executive director at Vodafone Idea.


Also Read | Kumar Mangalam Birla appointed Vodafone Idea's Non-Executive Chairman; Ravinder Takkar steps down

Vodafone Idea's financial troubles

Vi, a joint venture between the Aditya Birla Group and Vodafone Group, was formed to tackle the significant competition unleashed after Reliance Jio’s entry into the market back in 2016. However, India’s third-largest telco by market share soon came under pressure due to rising AGR dues, with management highlighting difficulty in surviving unless some concessions were given.

Under a 2021 telecom relief package, the government converted a portion of Vi’s dues into equity, eventually raising its stake to 48.99%, making it the company’s largest shareholder. In February 2023, nearly Rs 16,000 crore of interest on deferred spectrum and AGR dues was converted into equity, giving the government about a 33% stake at the time. This was followed by the conversion of an additional Rs 36,950 crore of spectrum auction dues into equity in April 2025. In the same year, Birla resigned.

Also Read | Kumar Birla back as Vodafone Idea’s non-exec Chair amid turnaround attempt

The government in December 2025 approved a partial moratorium on Vi’s dues, freezing them at Rs 87,695 crore and deferring repayments to the 2030s, which provided near-term cash flow relief for the debt-ridden firm.

Earlier this month, Vodafone Idea announced that the Department of Telecommunications (DoT) reduced the telco’s adjusted gross revenue (AGR) dues by 27% to Rs 64,046 crore as of December 31. It added that DoT formed a committee to reassess its AGR dues as per the order passed by the Supreme Court earlier. DoT in January this year had frozen AGR dues at Rs 87,695 crore as of December 31, 2025.

Also Read | Vodafone Idea shares rally 8% after govt cuts AGR dues by 27%. Time to buy?

It added that, as per the latest government order, the final amount will be payable in tranches. A minimum of Rs 100 crore will be paid annually over four years from FY32 to FY35. The remaining amount will be paid in six equal installments annually from FY36 to FY41.

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