To save Vodafone Idea from the binge of collapse, Birla offers the Indian Government his stake in Vodafone Idea shares. He expressed interest in collaboration with the Government as a last chance to keep the company alive.

Reeling under a massive debt of over Rs 1.5 crore, Vodafone Idea is struggling to keep its head above a predicted collapse. Unless the fall is prevented somehow, this catastrophe is likely to hit 27 crore subscribers. The biggest sufferer is, without doubt, going to be the Modi Government. It is at this juncture that Birla Group Head has offered his stakes in the company to keep the company afloat.

Today, the third-largest service provider in India is just inches away from severe bankruptcy. While none of the repayments has been defaulted as such, this is every chance of such a possibility. According to Vi News updates, the Aditya Birla Group has a 27.66% stake, Vodafone Plc has a 44.39% stake and the remaining are public stakes.

Should this happen, Vi shareholders would be heavily diluted, as government debt is roughly six times the current market cap. But such a solution might be an acceptable outcome to shareholders, with a $20 billion enterprise value feasible and non-dilutive, a Deutsche Bank Research report said.

Various sources claim that Vi owes this government around Rs 1,57 crores as spectrum dues. It seems various banks, including the State Bank of India are yet to receive crores of debt money.

As per a report from Nomura, the list goes like this:

• State Bank of India -₹11,000 crore
• Yes Bank-₹4,000 crore
• IndusInd Bank-₹3,500 crore
• IDFC First Bank-₹3,240 crore
• Punjab National Bank-₹3,000 crore
• ICICI Bank-₹1,700 crore
• Axis Bank-₹1,300 crore
• HDFC Bank-₹1,000 crore

Experts say that Vi, as of March 2021, owes almost Rs 60,000 crore as adjusted gross revenue to DoT (Department of Telecommunications), Rs 23,000 crore to various financial establishments and Rs 96,270 crores debt as part of other obligations.

The telecom department and the national exchequer would lose the most in case of a collapse of Vodafone Idea. The picture looks grim considering the poor recoveries and unrealised outstanding after the collapse of Anil Ambani’s Reliance Communications and Aircel, where too several thousands of crores of rupees remain locked. Taxpayers stand to lose the most, an expert brokerage analyst stated.

The possibility of Bharti Airtel and Reliance Jio acting as caretakers of the company is also being speculated. Former Secretary of Telecom & Information Technology, Mr R Chandrashekhar says this will be a probable solution considering the plight of the 27 crore subscribers.