Latest news with #AdityaBirlaGroup
Mint
a day ago
- Business
- Mint
Retail investors slam Vodafone Idea over user wipeout, stock crash
Retail shareholders ofVodafone Idea Ltd (Vi) raised concerns on Friday over the company's continued loss of subscribers and its fragile financial health. During the extraordinary general meeting (EGM) convened to approve the ₹20,000 crore fundraise, shareholders questioned the management about the lack of upside in the share price and a significant fall, particularly in the aftermath of the follow-on public offer (FPO) last year. The absence of Aditya Birla Group chairman Kumar Mangalam Birla from the meeting also drew concern, with a few shareholders expressing disappointment over his non-attendance. The government is the largest shareholder in Vodafone Idea with a 49% stake, followed by promoters—Vodafone Group at 16.07% and Aditya Birla Group at 9.5%. Retail investors own 14.96% of the company. 'Despite the previous fundraises, including the government conversion, there is no upside in the share price. In fact, the government's equity investment (via dues conversion) in the company has also gone into losses (at the current share price). If the management cannot handle the company, it should consider selling or surrendering it to the government," Santosh Kumar Saraf, a retail shareholder of the company, said during the meeting. Also Read: Faster WiFi plan hits spectrum interference worry Saraf wondered aloud what would happen if the company defaulted even after the fundraiser. Lately, the government has been exploring a resolution on the telecom operator's substantial dues. As of 31 March, Vodafone Idea's total government dues stood at around ₹2 trillion, including ₹1.19 trillion in spectrum dues and ₹83,400 crore adjusted gross revenue (AGR) dues. Mounting expenses In the absence of any relief from the government, starting 31 March 2026, Vodafone Idea will have to pay an annual instalment of over ₹18,000 crore for the next six years towards AGR and spectrum dues to the government. The dues are under moratorium, which will expire in September. In 2025-26 itself, Vodafone Idea will have to pay ₹16,428 crore towards AGR dues and ₹2,539 crore towards deferred spectrum dues. Going by the company's share price performance, the Friday closing share price of ₹7.40 is over 38% lower than the FPO listing price of ₹12 in April last year. In fact, the government's investment in Vodafone Idea through two equity conversions at ₹10 a share has also fallen by 26% at the current share price. In August 2018, when Vodafone Group completed its merger with Idea, the company's share price was ₹30. 'The company needs to focus on increasing its business. Many small investors are stuck in the company for the last so many years," said Redeppa Gunduluru, another retail investor, who has expressed concerns over the losses he incurred recently and the volatile share price. 'Vi's continued subscriber losses and weaker data net adds remain key concerns. Despite potential acceleration in network investments, we believe regaining subscribers will remain a tall ask for Vi, given that peers—with superior free cash flow generation and deeper pockets—can keep customer acquisition costs higher," said analysts at Motilal Oswal in a note dated 2 June. 'Further, with no relief so far on AGR dues (repayments commence March 26) and no breakthrough on the debt raise, we believe Vi is likely to face an annual cash shortfall of ₹20,000 crore and may be unable to meet its capex guidance of ₹50,000-55,000 crore over FY25-27," the analysts said. Narender Chauhan from Uttar Pradesh, another shareholder of the company, asked the management about the company's road map in the next 3-4 years, its plans for pan-India 5G coverage, and clarity on the satcom services launch after its recent collaboration with US-based AST SpaceMobile on direct-to-device connectivity. Dodging queries In an exchange filing on 30 May, Vodafone Idea said its board had approved raising another ₹20,000 crore through a follow-on public offering, private placement, or other permissible mode. The company said a capital raising committee will evaluate and decide on the potential route of fundraising. This fundraising approval comes at a time when the telecom operator is also looking to tie up ₹25,000 crore in bank debt to fund the capex for network expansion. When shareholders asked about the use of the ₹20,000 crore proceeds, the company's chief financial officer Murthy G.V.A.S. said, 'The proceeds will be used for capital expenditure." The management, however, did not address the shareholders' queries about the company's survival and revival concerns and the way forward. Also Read: Next-gen gadgets, WiFi speeds to get boost as India to open up new spectrum Notably, since the merger, Vodafone Idea has raised total equity of around ₹56,000 crore, out of which around ₹27,000 crore has been contributed by the promoters, the company told the Supreme Court in a recent plea to seek waiver on AGR dues from the government. The plea, however, was rejected by the court. In the petition, the telecom company had said it would not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues worth ₹83,000 crore linked to AGR. On the shareholder questions, Ravinder Takkar, the company's non-executive chairman, said, 'most of the questions were related to items outside the agenda items (of the EGM)." Takkar, however, asked the company to take note of some of the suggestions made by the shareholders. Pinning its hopes Vodafone Idea is set to incur capital expenditure of ₹5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, the company's CEO, Akshaya Moondra, had said in an earnings call on 2 June. 'I see no reason why the government should be constrained in any way to offer relief…," Moondra had said. Vodafone Idea is the most widely held stock, with over 6 million retail shareholders (more than the State Bank of India), according to the company's letter to the department of telecommunications on 17 April seeking further support. In May last year, Vodafone Idea said it would incur a capital expenditure of ₹50,000-55,000 crore over the next three years to expand its 4G network and launch its 5G service. "Completion of ₹25,000 crore debt-raising is key for executing Vi's ₹50,000-55,000 crore capex programme. Higher government flexibility around AGR dues offers a ray of hope," IIFL Capital said in a note on 2 June. Also Read: Will private 5G networks take off, finally? The retail investors also questioned the company's management about the fall in subscriber base and whether there are any plans to merge with state-owned BSNL. In an interview withMinton 23 April, Union communications minister Jyotiraditya Scindia said there are no plans to merge Vodafone Idea with BSNL. 'I do not think it is necessarily inefficient to have two competing businesses. There are multiple verticals where the government has competing businesses. Also, there was no physical cash outgo in this (Vodafone Idea) conversion. What the government has retained is an upside, no downside," Scindia had said. As of 31 March, Vodafone Idea had 198.2 million mobile subscribers. Even as Vodafone Idea has been losing subscribers for a long time now, the company's subscriber churn rate has slowed down during the March quarter. Compared to the loss of 5 million subscribers each in the September and December quarters, its subscriber churn slowed down to 1.6 million in the fourth quarter.
India.com
3 days ago
- Business
- India.com
Masterstroke by Kumar Mangalam Birla, decides to acquire THIS American company for Rs 10740692375, Birla Group now plans to…
Novelis and Aleris Corporation: Aditya Birla Group, India's leading business conglomerate, is working relentlessly to expand its business. In a major development, the group's company, Hindalco Industries, has decided to acquire the American company AluChem for USD 125 million (approximately Rs 10,740,692,375). It is important to note that this marks Hindalco's third acquisition in the United States. Earlier, the company had acquired Novelis and Aleris Corporation. This deal will be executed through Hindalco's subsidiary, Aditya Holdings. Plan to Double Capacity in Five Years AluChem produces 60,000 tonnes of specialty alumina annually. The company has its three plants in Ohio and Arkansas. The acquisition of AluChem will significantly strengthen Hindalco's position in North America. Hindalco currently has a specialty alumina capacity of 500,000 tonnes. As per company's future plans, it aims to double this capacity to 1 million tonnes by 2030. The market for specialty alumina is growing rapidly, with applications in sectors such as ceramics, electronics, aerospace, medical, electric vehicles, and semiconductors. Here are some of the key details: AluChem has a total of three manufacturing units in Ohio and Arkansas AluChem has a combined annual capacity of 60,000 tonnes. Kumar Mangalam Birla, Chairman of the Aditya Birla Group, described this acquisition as a significant step in Hindalco's strategy to achieve leadership in high-tech materials. He stated, 'Our move into the specialty alumina sector will not only accelerate the growth of sustainable solutions for the future but also open up opportunities for high-impact growth.' What is Specialty Alumina? Specialty alumina is a highly purified form of aluminum oxide (Al₂O₃), manufactured through advanced processes. It stands apart from regular alumina due to its exceptional qualities, including superior purity, enhanced strength, and excellent chemical stability. It is tailored for use in various high-tech industries, including: Ceramics: For producing strong and heat-resistant ceramic products. Electronics: Used in semiconductors and electronic equipment. Aerospace: For lightweight and durable materials. Medical: In artificial bones and dental care. Electric Vehicles: In batteries and other components. Others: Such as chemical filters, coatings, and polishing materials.
Hans India
4 days ago
- Business
- Hans India
Hindalco to acquire US-based AluChem Companies, Inc. for $125mn, expands global play in high-tech alumina
Hindalco Industries Limited, the metals flagship of the Aditya Birla Group, has announced the acquisition of a 100% equity stake in US-based AluChem Companies, Inc., a prominent manufacturer of Specialty Alumina, for an enterprise value of USD 125 million. The acquisition will be carried out through Aditya Holdings LLC, a step down wholly owned subsidiary of Hindalco. This strategic acquisition marks a significant investment in specialty alumina, a key step in scaling its high-value, technology-led materials portfolio. Hindalco's Specialty Alumina business, a key pillar of its value-added strategy, has delivered consistent double-digit growth in recent years and emerged as a high-growth, high-margin vertical within the company's portfolio. As specialty alumina finds newer applications across cutting-edge sectors such as electric mobility, semiconductors, and precision ceramics, this acquisition propels Hindalco up the innovation curve—enabling access to next-generation alumina applications and driving value-accretive growth. Kumar Mangalam Birla, Chairman of Aditya Birla Group, said, 'This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech materials. Our strategic foray into the specialty alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities. By integrating advanced technologies into our value chain, we are reinforcing our commitment to self-reliance, import substitution, and building scale in innovation-led businesses.' Commenting on the development, Mr. Satish Pai, Managing Director, Hindalco Industries, said, 'This acquisition marks a pivotal step in strengthening our capabilities in next-generation alumina applications. As alumina gains increasing relevance in critical and clean-tech sectors, AluChem's advanced chemistry capabilities will significantly enhance our ability to serve these fast-evolving markets. Importantly, it deepens our high value-added portfolio with differentiated products that drive profitability and strengthen our global competitiveness. It reinforces our commitment to innovation and to expanding our global footprint.' AluChem brings Hindalco a strong presence in North America with an annual capacity of 60,000 tons across its three advanced manufacturing facilities in Ohio and Arkansas. The company is a long-established supplier of ultra-low soda calcined and Tabular Alumina—materials known for their exceptional thermal and mechanical stability used in cutting-edge applications in high precision mechanical components, and energy-intensive industrial refractories. Saurabh Khedekar, CEO – Alumina Business, Hindalco Industries, added, 'The acquisition unlocks immediate synergies for Hindalco, including market access and product portfolio expansion. Hindalco plans to work with AluChem's high performance technology solutions and scale up production of ultra-low soda alumina products to drive larger global market share. The acquisition reinforces our ability to offer end-to-end alumina solutions that are both future-ready and customer-centric.' Ronald P. Zapletal, Founder, AluChem Companies, Inc., said, "This partnership with Hindalco brings AluChem the ability and capital to scale up faster and build scale in North America. AluChem will benefit from their world-class sustainability and safety standards and practices, access to integrated operations and consistent, reliable raw material supply chain. Their ability to leverage R&D capabilities and a talented workforce adds tremendous value to our innovation pipeline, helping drive market expansion beyond North America." The global Specialty Alumina market is projected to grow significantly, with increasing demand for tailored solutions in sectors ranging from ceramics and electronics to aerospace and medical applications. Hindalco currently operates 500 thousand tons of specialty alumina capacity and aims to scale up to 1 million tons by FY30. The transaction is expected to close in the upcoming quarter, subject to customary closing conditions and regulatory approvals. As Hindalco advances its downstream value-added strategy across aluminium, copper and specialty alumina, this acquisition marks a decisive step forward in engineering better futures through innovation, sustainability, and high-tech manufacturing.
India.com
4 days ago
- Business
- India.com
Meet girl who started business at 17, lives in Rs 4250000000 mansion, now challenging Mukesh Ambani's daughter Isha Ambani in...
Ananya Birla (File) Isha Ambani, the only daughter of Mukesh Ambani and Nita Ambani, has emerged as a successful businesswoman in her own right, and transformed Reliance Retail into India's largest retailer, which has brought several top global brands to the country. But now, Isha is facing a major challenge in the beauty and personal care (BPC) sector from another billionaire heiress, Ananya Birla, the stylish and multi-talented daughter of business tycoon Kumar Mangalam Birla. Earlier this year, Ananya Birla, who started her first startup at the age of 17, announced a new venture in the BPC sector, which pitted her against market leaders like Tata, HUL, L'Oreal, and Tira– a beauty platform led by Isha Ambani. In a statement, an Ananya Birla-led company announced it will roll out a wide range of beauty and personal care brands, such as makeup, fragrances and other products in a phased manner in 2025 under the Lovetc brand. Who is Ananya Birla? Ananya Birla is the daughter of Kumar Mangalam Birla, the Chairman of the Aditya Birla Group conglomerate, who started her first business venture, Svatantra Microfin — a company which promotes financial independence and entrepreneurship among rural women by providing them accessible microfinance services — at the age of 17. Recently, Ananya launched the beta version of AI platform, ' at IIT Bombay, with plans of a nationwide roll-out in place. Ananya Birla also serves as a director on the board of ABMCPL, the strategic body of the Aditya Birla Group, apart from holding key positions on the boards of other Aditya Birla Group companies, including Hindalco, Grasim, and ABFRL. Entrepreneur, platinum artist Notably, in addition to her business accolades, Ananya Birla is also a well-known singer-songwriter, and has collaborated with top global artistes such as Sean Kingston, Afrojack, and Mood Melodies. She is the first Indian artist with an English-language single to go platinum in India, with five of her singles having achieved platinum or double platinum status. In 2020, she became the first Indian to sign with Maverick Management in Los Angeles and released 'Let There Be Love' and 'Everybody's Lost', becoming the first Indian artist to be featured on American national top 40 pop radio show, Sirius XM Hits. Ananya Birla has received several awards that have recognized her work and entrepreneurial ventures, including T Panache Trendsetters of 2016 award for Young Business Person. In 2018, GQ named her in its list of Most Influential Indians of 2018. The 30-year-old multi-talented entrepreneur is also known for philanthropic ventures, and runs Ananya Birla Foundation, a charitable organization she launched in 2020, that works to support mental health, equality, education, financial inclusion, climate change and humanitarian relief efforts. Ananya Birla to challenge Isha Ambani Now, Ananya Birla has ventured into the beauty and personal care market, reportedly under Birla Cosmetics, a company established in July 2023, as per a filing in the Ministry of Corporate Affairs. According to reports, Ananya Birla's Lovetc has roped in Bollywood actress Janhvi Kapoor of the beauty care brand, with Birla stating that her new venture is eyeing to cater to the surging demand for home-grown cosmetic brands in India. 'With greater exposure to global products and knowledge, Indian consumers now demand more from home-grown brands—this venture aims to meet those expectations with authenticity and innovation and bring world class products to the Indian marketplace,' Ananya Birla said, adding that her brand aims to appeal to a global consumer base. 'Our brands are built for the new age—from brand identity to go-to-market strategy, every element is designed to challenge conventions and redefine the consumer experience,' she added. Notably, Ananya Birla is also the brand ambassador of Loreal's Maybelline line of cosmetics. Ananya Birla net worth As per media reports, Ananya Birla owns assets worth Rs 1.75 lakh crore, and lives in the Jatia House, the family's lavish three-storey sea-facing mansion in Mumbai's exotic Malabar Hill. The palatial bungalow is spread over 3,000 square meters, and is estimated to be worth Rs 425 crore. Ananya's father, Kumar Mangalam Birla is one of the wealthiest men in India, boasting a net worth of $21.9 billion, making him the 95th richest individual globally, according to Forbes.
Time of India
4 days ago
- Business
- Time of India
Hindalco shares in focus after subsidiary acquires US-based AluChem for $125 mn
Hindalco's subsidiary has acquired US-based AluChem for $125 million, marking its entry into the low-soda tabular alumina space. The move boosts Hindalco's speciality alumina portfolio, strengthens its North American footprint, and aligns with its strategy to lead in high-tech, value-added materials. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Hindalco Industries , the metals flagship of the Aditya Birla Group , will be in focus on Wednesday after the company announced the acquisition of US-based AluChem Companies, Inc. for an enterprise value of $125 million. The deal will be executed through Aditya Holdings LLC, a step-down wholly owned subsidiary of marks the first entry by an Indian company into the low-soda tabular alumina segment, significantly strengthening Hindalco's presence in precision-engineered, high-performance industrial materials. Tabular alumina is a premium-grade material used in applications across refractories, ceramics, and advanced this acquisition, Hindalco enhances its footprint in North America and broadens its speciality alumina portfolio. The company's speciality alumina business — a key pillar in its value-added product strategy — has seen consistent double-digit growth and has emerged as a high-margin vertical in recent speciality alumina gains traction across sectors such as electric mobility, semiconductors, and precision ceramics, the acquisition positions Hindalco to access next-generation applications and drive innovation-led has a strong presence in North America, with an annual production capacity of 60,000 tonnes across three manufacturing facilities located in Ohio and Arkansas. It is a well-established supplier of ultra-low soda calcined and tabular alumina, known for its thermal and mechanical stability, catering to high-precision industries and energy-intensive Mangalam Birla, Chairman of Aditya Birla Group, said, 'This acquisition is an important step in our global strategy to build a leadership position in value-added, high-tech strategic foray into the speciality alumina space will not only accelerate the development of future-ready, sustainable solutions but also open new pathways to pursue high-impact growth opportunities."Hindalco shares have gained around 13% so far in 2025 and have delivered a robust return of 64% over the past two years. The company currently commands a market capitalisation of approximately Rs 1.5 lakh crore.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)
