Stocks of companies controlled by Aditya Birla Group declined after Kumar Mangalam Birla stepped down as the chairman of the conglomerate's struggling telecom operator Vodafone Idea Ltd.
Shares of UltraTech Cement Ltd., the biggest company in the Aditya Birla Group by market capitalisation, fell as much as 1.1%. Grasim Industries Ltd. fell nearly 2%. Aditya Birla Capital Ltd. declined 2.5%, while Aditya Birla Fashion Ltd. and Aditya Birla Money Ltd. fell by 2% and 5%, respectively.
This came a day after Vodafone Idea's board accepted Birla's request to step down as a non-executive director and non-executive chairman of the carrier. Birla didn't offer any explanation for his decision.
He, however, had written to the government on June 7 seeking immediate support for the company as its survival is in doubt after the Supreme Court did not allow telecom operators' plea to correct pending dues.
Shares of Vodafone Idea plunged as much as 24%, the most since Sept. 2020, before paring losses to trade 10.83% lower as of 1 p.m. Of the 23 analysts tracking the company, one has a ‘buy' rating, six suggest a ‘hold' and 16 recommend a ‘sell', according to Bloomberg data. The average of 12-month consensus price targets implies a upside of 27.3%.
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