NEW DELHI: The successful conclusion of Vodafone Idea’s follow-on public offer (FPO) of Rs 18,000 crore, the country’s largest FPO, marks a turning point for the telecom industry, said Kumar Mangalam Birla, Chairman of Aditya Birla Group and promoter of Vodafone Idea Limited (Vi).
Speaking at the Vodafone Idea FPO ceremony held at the NSE on Thursday, April 25, Birla advocated for the presence of three private telecom companies in a country of 140 crore. Emphasising the significance of a revitalised Vodafone Idea for India, he described the moment as the commencement of Vodafone Idea 2.0.
“The emphatic oversubscription of the FPO – with the overall book being subscribed 7 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,” said Birla.
Birla also mentioned that the robust engagement from both foreign and domestic investors is heartening. As per him, the full subscription of the retail portion is truly commendable, given the sheer scale of the offer. The telco’s FPO subscribed 6.56 times, with investor bid for 8,011.8 crore equity shares. This marks the largest FPO ever subscribed in India, surpassing previous records set by Yes Bank’s Rs 15,000 crore and ONGC’s Rs 10,542 crore offerings.
While talking about using the fund, Birla said the proceeds from this fundraise are earmarked for a significant capital expenditure cycle. He is confident that on the back of this fundraise and continued support from banks, Vi will stage a smart turnaround.
“Vi, today, is not just a telecom company. It is a national asset with 215 million users, about 8000 MHz spectrum and a network that spans Kashmir to Kanyakumari,” said Birla.
The telco has been losing subscribers to its competitors due to poor investment in its infra and delayed launch of 5G services. While its competitors, Reliance Jio and Bharti Airtel, launched their 5G services in 2022, Vi is yet to launch commercial 5G services in India.
Birla said his group has been committed to this sector for over two and a half decades now. As per him, along with its partner, Vodafone Group, they have cumulatively invested about Rs 1,70,000 crore in the Indian Telecom industry.
“Before this FPO, in the last 5 years, out of Rs 30,000 crore raised by the company, more than 75% has come from the two promoter groups. The latest fund raise has also seen an investment of over Rs 2,000 crore from the Aditya Birla Group. This continued commitment stems from our belief in the promise of the India digital story,” said Birla.
‘Vi is a national asset with 215 million users’
Kumar Mangalam Birla advocated for the presence of three private telecom companies in a country of 140 crore. Emphasising the significance of a revitalised Vodafone Idea for India, he described the moment as the commencement of Vodafone Idea 2.0. “Vi, today, is not just a telecom company. It is a national asset with 215 million users, about 8000 MHz spectrum and a network that spans Kashmir to Kanyakumari,” said Birla