Vodafone Idea's New Shares Listed on Stock Exchanges
Vodafone Idea's newly issued shares debuted on the stock exchanges, trading marginally lower at Rs 13.09 per share. This follows the company's successful follow-on public offering (FPO), which raised Rs 18,000 crore, making it India's largest FPO.
Aditya Birla Group's Continued Commitment to the Telecom Sector
Kumar Mangalam Birla, Chairman of the Aditya Birla Group, reiterated the group's unwavering commitment to the Indian telecom sector. He highlighted the group's cumulative investment of Rs 170,000 crore in the sector, alongside its partner, Vodafone Group. Notably, over 75% of the Rs 30,000 crore raised by the company in the past five years has come from the two promoter groups. The latest FPO also witnessed an investment of over Rs 2,000 crore from the Aditya Birla Group.
FPO Proceeds to Fuel Network and Technological Upgrade
Birla emphasized that the FPO proceeds will be directed towards a significant capital expenditure cycle. This investment will facilitate network and technological upgrades across key markets, enhancing operational efficiencies and driving improved performance. This investment cycle is expected to trigger a growth cycle for the company.
Government Stake Diluted, Vodafone Idea to Stage Smart Turnaround
Following the FPO, the Indian government's stake in Vodafone Idea was diluted to 24%, while Vodafone PLC's stake stands at 23%. The Aditya Birla group will hold an 18% stake post-dilution. Birla expressed confidence that Vodafone Idea will stage a smart turnaround with the support of this fundraising and continued backing from banks.
FPO Oversubscription Reflects Confidence in India's Digital Story
Birla characterized the successful conclusion of the FPO as a turning point for the telecom industry. He attributed the overwhelming response from marquee investors to the government's vision of a digital India. The robust oversubscription of the FPO, with the overall book being subscribed seven times and the institutional book nineteen times, underscores the immense potential of India's digital story and Vodafone Idea's role in it.
Government Reforms and Robust Telecom Networks Crucial for Digital Growth
Birla acknowledged the significant role played by the government's path-breaking reform package in shaping Vodafone Idea's journey. He commended the policy environment that encourages investment, innovation, and competition. He emphasized the crucial role of robust telecom networks in supporting India's booming digital economy, serving a nation of 1.4 billion people.