In Short:
Aditya Birla Group chairman Kumar Mangalam Birla praised Vodafone Idea (Vi) as a national asset after the successful conclusion of its Rs 18,000 crore FPO. The fund raise will help Vi’s financial turnaround and the beginning of Vi 2.0. Birla emphasized the importance of a revitalized Vi for India’s digital economy. The FPO was oversubscribed, showing strong investor interest. Vi plans to strengthen its 4G operations and roll out 5G networks with the raised funds.
Aditya Birla Group Chairman Calls Vodafone Idea a National Asset
Aditya Birla Group chairman Kumar Mangalam Birla has emphasized the importance of Vodafone Idea (Vi) as a national asset. The successful conclusion of Vi’s Rs 18,000 crore follow-on public offer (FPO) has set the stage for the telco’s financial turnaround and the beginning of a revitalized Vi 2.0, which Birla believes is crucial for the country.
Vi’s Significance
Birla highlighted that Vi is not just a telecom company but a national asset with 215 million users and about 8000 MHz spectrum. With the recent fund raise and ongoing support from banks, Vi is expected to undergo a smart turnaround. Birla stated that a revitalized Vi is essential for India, especially in the booming digital economy.
Future Plans
Vi’s latest growth capital expenditure will enable a network and technological upgrade across key markets, leading to improved operational efficiencies and performance. Birla emphasized that this cycle of investment will drive growth, as evidenced by the strong participation of marquee investors in Vi’s equity issuance.
Financial Health and Competition
Vi’s FPO will be followed by a Rs 25,000 crore debt issue, contributing to the targeted Rs 45,000 crore fundraising drive aimed at regaining financial health and enhancing competition with bigger rivals like Reliance Jio and Bharti Airtel. Vi’s shares saw a positive movement following the FPO listing.
Commitment to Digital India
Birla noted that the Aditya Birla Group has invested over Rs. 2,000 crore in Vi’s fund raise, reflecting their belief in the potential of India’s digital story. The group has a longstanding commitment to the telecom sector and has invested significantly in India’s telecom industry.
Future Investments
Vi plans to allocate more than 70% of the targeted fundraise towards strengthening its 4G operations and rolling out 5G networks, aligning with its future growth strategies.
Preferential Share Issue
Earlier, Vi’s board approved a preferential share issue to raise Rs 2,075 crore from an Aditya Birla Group entity, laying the foundation for a broader funding program crucial for the company’s revival.
