This joint venture between India's Idea cellular and Britain's Vodafone Group plc, Vodafone Idea, owes the Indian government around 500 billion in rupees, which is 6.8 billion in dollars. According to the number of subscribers, Vodafone Idea comes under one of India's top three telecommunication firms after companies like Jio and Airtel.
According to a report made by the Mint newspaper, Amazon.com, and Verizon Communications Inc., a US wireless carrier company is planning on investing more than around 4 billion dollars in Vodafone Idea after seeing the struggles the company is going through. On Thursday, Mint newspaper gave a report showing how the toil is up to 14% for this Indian telecommunication company.
The news about Vodafone Idea paying up the Indian government all the money they owe was suddenly after the Supreme court passed the rule. The Supreme court passed a law just two days before this news came out, that all mobile companies owing the Indian government money should settle it between ten years. This news came out shocking for Vodafone Idea, given that they owe the government of India in billions. The company came to the point of doubting whether or not they will be able to continue.
Vodafone Idea is the third most famous telecommunication firm in India, which came into formation after the collaboration between Britain's Vodafone Group plc and India's Idea Cellular. The company seems to owe around 500 billion in Indian rupees to India's government, roughly 6.8 billion dollars. During the pending court ruling, Vodafone Idea stopped its stake-sales, but famous companies Amazon and Verizon are now to start resuming discussions about investing over 4 billion in Vodafone Idea. This news was available from two people by the Mint newspaper, unnamed, who know about the talks on this matter. Both Amazon and Verizon were unwilling to return the emails about the comments outside the regular business hours in the US. Shares came up by 9.6% at rupees 10.85 by 0645 GMT in Vodafone Idea.
There were speculations about Alpabet Inc's Google wanting to buy a 5% stake in Vodafone Idea stake in May. Still, later in June, there were also talks about Amazon's buying a stake in Bharti Airtel, Vodafone Idea's rival. CNBC TV 18 on Thursday, reported that Vodafone Idea is going to sell a stock of their optic fibre business at a board meeting planned on Friday for as a fundraiser idea. However, Vodafone Idea declined to comment on these speculations.
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