“Vi is not just a telecom company, it’s a national asset with 215 million users and about 8,000 MHz spectrum,” mentioned Birla. Investors in Vodafone Idea made a 26% return inside a week because the shares of the telecom companies firm, which had been supplied at Rs 11 apiece in an FPO, closed at Rs 13.9 on the BSE.
The proceeds from the fund-raise, which was garnered via a follow-on public providing (FPO), will probably be used to improve the loss-making and debt-saddled community’s infrastructure, which can improve operational efficiencies main to higher efficiency.
“The cycle of investment will trigger the cycle of growth,” mentioned Birla on the firm’s FPO itemizing on the NSE on Thursday. He added that “on the back of this fund-raise and continued support from banks, Vodafone Idea will stage a smart turnaround. This moment in some ways, marks the beginning of Vodafone Idea 2.0. I believe that a revitalised Vodafone Idea is important for India”.
Vi, earlier often known as Idea Cellular (a partnership between Aditya Birla Group, Tata Group and America’s AT&T) was listed on the bourses 17 years in the past. Since then, the India telecom story has been “punctuated by many events and milestones”.
“The successful conclusion of (this fund-raise), India’s largest FPO, marks one such turning point for the industry,” mentioned Birla. Vi’s journey thus far has been formed considerably by govt’s reform package deal, which has been encouraging a aggressive three-player market. “A nation of 1.4 billion people deserves three private telecom players,” mentioned Birla.
Just a few years in the past, the corporate had inched in direction of chapter. The govt, then, transformed the corporate’s dues into fairness, thus changing into its largest shareholder. Birla, who had given up his directorship in 2021, returned to the board of Vi in 2023 after govt’s rescue package deal.
Birla’s conglomerate and overseas associate Vodafone have collectively invested round Rs 1.7 lakh crore within the telecom enterprise. Ahead of the FPO, Birla personally invested Rs 2,000 crore in Vi.
“The outcome (of the FPO) is nothing but a reflection of trust and confidence shown by Birla himself. It is also an unflinching commitment to the telecom sector that he has demonstrated by putting in his personal money as well as sourcing capital across the globe,” mentioned SBI chairman Dinesh Kumar Khara on the occasion.
