Shares of Vodafone Idea Limited (Vi) witnessed a sharp rise after the company announced the reappointment of Kumar Mangalam Birla as its Non-Executive Chairman. Following the announcement, the company’s shares rose nearly 4% to Rs 11.24 during market opening on Wednesday, May 6, reflecting growing investor confidence.
The market responded positively to Birla’s return, nearly 5 years after he stepped down from the chairman’s post amid mounting financial pressure on the telecom company Vodafone.
Meanwhile, Ravinder Takkar has stepped down as chairman and will now serve as Non-Executive Vice Chairman, a move aimed at ensuring continuity and stability in the company’s leadership.
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The Aditya Birla Group and Vodafone Group merged their telecom businesses in 2018 to form Vi in response to intense competition following the entry of Reliance Jio into the Indian telecom market. However, the company continued to face major financial challenges due to heavy debt and adjusted gross revenue (AGR) dues.
In 2021, the Central Government announced a relief package for the telecom sector, under which part of Vi’s dues was converted into equity, making the government the company’s largest shareholder.
Further spectrum and AGR-related dues worth thousands of crores were converted into equity in 2023 and 2025. In December 2025, the government also granted a partial moratorium on AGR payments, postponing repayment obligations until after 2030, providing temporary relief to the company’s cash flow pressures.
More recently, the Department of Telecommunications (DoT) reduced the company’s AGR dues by 27% to ₹64,046 crore from the earlier Rs 87,695 crore.
Vodafone Idea shares continued their upward trend on Tuesday and were trading at Rs 11.11 on the National Stock Exchange, up 2.87%. The telecom stock has gained nearly 27% over the past 30 days.