Vodafone Concept (Vi), the third-largest telecom operator within the nation, just lately concluded its FPO (follow-on public supply) of Rs 18,000 crore. It’s the largest FPO within the nation to this point and was subscribed 7 occasions total and about 19 occasions by institutional buyers. Kumar Mangalam Birla, Chairman of the Aditya Birla Group (ABG), stated, that the response to the FPO demonstrates the potential of the India digital story and Vodafone Concept’s function. Birla can be the chairman of Vodafone Concept Restricted (VIL).
He thanked the Indian authorities for arising with a reform bundle that addressed the liquidity points in addition to litigation points for the sector. Additional, Birla stated, “I thank the honourable Prime Minister Shri Narendra Modi ji, the Honourable Finance Minister Smt. Nirmala Sitharaman and the Honourable Telecom Minister Shri Ashwin Vaishnaw for his or her management and unequivocal dedication to preserving a aggressive 3-player market.”
The federal government of India accepted a stake within the cash-strapped telco and lowered the curiosity dues serving to the corporate in decreasing its total debt. This ensured that India remained a three-player market.
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What Would be the Funds Used For?
The funds raised by Vi by way of this FPO shall be used for capex, quite than paying off debt. Birla confirmed that the funds raised are earmarked for a major capital expenditure cycle. Vi will improve the community throughout key markets, leading to extra effectivity within the operations.
“On the again of this fund increase and continued assist from banks, Vodafone Concept will stage a sensible turnaround. This second in some methods, marks the start of Vodafone Concept 2.0. I imagine {that a} revitalized Vodafone Concept is essential for India,” added Birla.
Learn Extra – Vodafone Concept Raises Rs 5400 Crore from Anchor Buyers
Vodafone Group and Aditya Birla Group, the 2 promoters of Vi, have cumulatively invested round Rs 1,70,000 crore within the Indian telecom business. A lot just lately, Vi additionally received Rs 2,000 crore from an Aditya Birla Group Entity. The telco has raised about Rs 20,000 crore by way of fairness devices, and can additional look to lift anothe Rs 25,000 crore by way of debt.
