Vodafone shares plunge after KM Birla statement

#dailynews60 : Shares of Vodafone Idea on Monday declined over 6 per cent after its chairman Kumar Mangalam Birla raised concerns over statutory dues.

The stock ended 6.21 per cent down to Rs 6.49 on the BSE. Intra-day, it had hit a low of Rs 6.07, plunging as much as 12.28 per cent over its previous close.

On the NSE, the stock declined 5.8 per cent to Rs 6.50. It fell 14.49 per cent to a low of Rs 5.90 during the trading session.

Vodafone Idea Ltd’s billionaire chairman Kumar Mangalam Birla said on Friday said that the mobile service provider will shutdown if the government does not provide relief on the liability it faces in past statutory dues following a Supreme Court order.

Sunil Bharti Mittal-led Bharti Airtel may consolidate its position at the expense of Vodafone Idea Ltd as it has better balance sheet strength to deal with the eventuality of having to pay past statutory dues in case the Supreme Court rejects their review petitions, brokerages said.

Meanwhile, shares of Bharti Airtel gained 0.22 per cent to close at Rs 445.75 on the BSE.