“Telecom industry turning point for Vi FPO”

According to Kumar Mangalam Birla, Chairman of Aditya Birla Group and promoter of Vodafone Idea Limited (Vi), the successful completion of Vodafone Idea’s follow-on public offer (FPO) of Rs 18,000 crore, the highest FPO in the nation, signifies a turning point for the telecom sector.

 

Speaking on Thursday, April 25, at the Vodafone Idea FPO event held at the NSE, Birla argued in favor of having three private telecom carriers in a nation of 140 crore. He referred to the occasion as the launch of Vodafone Idea 2.0 and emphasized the importance of a revitalized Vodafone Idea for India.

“With the institutional book being subscribed 19 times and the overall book being subscribed 7 times, the FPO emphatically oversubscribed, demonstrating the tremendous potential of the India digital story and Vodafone Idea’s role in it,” Birla said.

Birla said that it is encouraging to see such strong participation from both local and international investors. Given the size of the deal, he believes that the retail portion’s complete membership is very noteworthy. Investors bid for 8,011.8 crore equity shares in the telecom’s 6.56 times subscribed FPO. This surpasses the milestones established by Yes Bank’s Rs 15,000 crore and ONGC’s Rs 10,542 crore offers as the biggest FPO ever subscribed in India.

Birla said during her discussion of the fund’s use that the money raised via this fundraiser would be used for a sizable cycle of capital expenditures. He has faith that Vi will pull off a brilliant comeback thanks to this fundraising and ongoing bank assistance.

These days, Vi is more than simply a telecom provider. With 215 million subscribers, almost 8000 MHz of spectrum, and a network that reaches from Kashmir to Kanyakumari, it is a valuable national asset, according to Birla.

The telecom has been losing customers to rivals as a result of inadequate infrastructural investments and a delayed rollout of 5G services. Vi has not yet introduced commercial 5G services in India, although rivals Reliance Jio and Bharti Airtel began offering 5G services in 2022.

Birla said that his organization has dedicated itself to this field for more than 25 years. According to him, they have together spent almost Rs 1,70,000 crore in the Indian telecom sector with its partner, Vodafone Group.

“Prior to this FPO, the two promoter groups contributed more than 75% of the Rs 30,000 crore that the business had raised in the previous five years. The Aditya Birla Group contributed more than Rs 2,000 crore to the most recent cash raising. We remain committed because we think the India digital narrative has great potential,” Birla said.

“Vi, which has 215 million users, is a national asset.”

Mangalam Kumar In a nation of 140 crore, Birla argued in favor of having three private telecom businesses. He referred to the occasion as the launch of Vodafone Idea 2.0 and emphasized the importance of a revitalized Vodafone Idea for India. These days, Vi is more than simply a telecom provider. With 215 million subscribers, almost 8000 MHz of spectrum, and a network spanning from Kashmir to Kanyakumari, it is a valuable national resource, according to Birla.