Vodafone Idea shares plunge; near-term cash concerns remain despite government relief plans

Kolkata: Vodafone Idea (Vi) shares plunged over 18% on the BSE Wednesday morning trade despite reports that the government is speedily preparing a relief package for the telecom sector.

This, since sector analysts and experts believe any potential relief package for the sector won’t help Vi overcome its immediate and formidable cash generation challenges, as it faces stiff payment obligations.

Vi shares nosedived on BSE also after the government reportedly said it has no plans to respond to Aditya Birla Group chairman Kumar Mangalam Birla’s offer of handing over the group’s 27.66% stake in Vi to any public sector or domestic financial entity. The stock had recovered some ground by rising to Rs 6.38 post-noon, though still down nearly 14%.