Mangalam Kumar Birla praises PM Modi for his support and claims that the FPO is the start of Vodafone Idea 2.0

Vodafone Idea 2.0, which would execute a “smart turnaround,” will launch with the successful conclusion of the Rs 18,000 crore follow-on public offer (FPO), according to Aditya Birla Group chairman Kumar Mangalam Birla. Birla commended Ashwani Vaishnav, the minister of telecoms, and Prime Minister Narendra Modi for creating a supportive legislative environment that promotes competition, investment, and innovation.

“The emphatic oversubscription of the FPO, with the overall book being subscribed seven times and the institutional book being subscribed 19 times, demonstrates the tremendous potential of the India digital story and Vodafone Idea’s role in it,” Birla said. “I believe that a revitalised Vodafone Idea is important for India,” he said.
This is Birla’s speech on April 25, 2024, during Vodafone Idea’s FPO IPO on the NSE.
Birla vowed to stay in this industry and emphasized the government’s support for maintaining a three-player, competitive market.
Good morning to all of you! Being here at the NSE for the equity share listing of Vodafone Idea after an extraordinarily successful FPO is simply amazing. Idea Cellular was listed on the bourses seventeen years ago. Since then, other occasions and significant anniversaries have dotted the India Telecom narrative.

And I think that one such turning moment for the telecom sector was the successful completion of the biggest FPO in India, which totaled Rs 18,000 crore. The government’s ambition for a digital India is substantiated by the large number of notable investors who took part in this equity offering. The massive potential of the India digital narrative and Vodafone Idea’s part in it is shown by the resounding oversubscription of the FPO, with the institutional book being subscribed to 19 times and the general book being subscribed to 7 times. It is encouraging to see such strong participation from both local and international investors. Especially considering the size of the package, the retail portion’s entire membership is quite praiseworthy.

The government’s groundbreaking reform package, which was nothing short of revolutionary for the whole industry, has had a tremendous impact on Vodafone Idea’s journey so far. I express my gratitude to Prime Minister Shri Narendra Modi ji, Finance Minister Smt. Nirmala Sitharaman, and Telecom Minister Shri Ashwin Vaishnaw for their unwavering dedication and leadership in maintaining a competitive three-player market. The current policy landscape promotes competition, investment, and innovation.

A strong telecom network is essential to sustain the expansion of India’s digital economy, which is expanding. A 1.4 billion-person country should have three private telecom companies.
These days, Vodafone Idea is more than simply a telecom provider. With 215 million subscribers, around 8000 MHz of spectrum, and a network that reaches from Kashmir to Kanyakumari, it is a valuable national asset.
As you are all aware, the Aditya Birla Group has been involved in this industry for more than 25 years. We have together invested almost Rs. 170,000 crore in the Indian telecom sector with our partner, Vodafone Group. Prior to this FPO, the two promoter groups contributed more than 75% of the Rs. 30,000 crore that the firm had raised in the previous five years.

The Aditya Birla Group contributed more than Rs. 2,000 crore to the most recent cash campaign. Our faith in the potential of the Indian digital narrative is the reason for our ongoing dedication.
This fund’s profits are intended for a sizable cycle of capital expenditures. This growing capital expenditure will open the door for network and technology modernization in important areas. Better performance will follow from increased operational efficiency. The growth cycle will start with the investment cycle. Vodafone Idea will execute a shrewd turnaround thanks to the proceeds of this fundraising and ongoing bank assistance. In a sense, Vodafone Idea 2.0 officially began at this very moment. Reviving the Vodafone Idea is crucial, in my opinion, for India.
I would like to express my gratitude to the Vodafone Idea team for their unwavering attitude. The “Vi” (pronounced WE) team, which consists of customer service representatives, network technicians, and marketing executives, has proven to be very dedicated, resilient, and persistent. Day in and day out, they have persevered in the face of unknown storms. It would be accurate to state, “What a team, Sirjee!”
Also deserving of my gratitude are the 215 million users who have supported the business through good times and bad. Their backing is what will allow Vodafone Idea to expand.
We would also like to express our gratitude to Axis, Jefferies, and SBI Caps, our banking partners, for this successful FPO.
I want to express my gratitude to everyone who has supported, embraced, and believed in the idea of digital India. a goal that will keep Vodafone Idea moving ahead. A revitalized Vi, together with other telecom operators, will significantly contribute to the exciting and sustainable development path that lies ahead as we stand on the threshold of a digital revolution today.
Many thanks for that!