Aditya Birla Group chairman Kumar Mangalam Birla said the £1.8 bn fund-raise has given Vodafone Idea a “fresh lease of life”, and set the stage for a “smart turnaround”. “Vi is not just a telecom company, it’s a national asset with 215 million users and about 8,000 MHz spectrum,” said Birla. Investors in Vodafone Idea made a 26% return within a week as the shares of the telecom services company, which were offered at Rs 11 apiece in an FPO, closed at Rs 13.9 on the BSE.
The proceeds from the fund-raise, which was garnered through a follow-on public offering, will be used to upgrade the loss-making form's network’s infrastructure, which will enhance operational efficiencies leading to better performance.
“The cycle of investment will trigger the cycle of growth,” said Birla at the company’s FPO listing at the NSE. 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”.
“The successful conclusion of (this fund-raise), India’s largest FPO, marks one such turning point for the industry,” said Birla. Vi’s journey to this point has been shaped significantly by govt’s reform package, which has been encouraging a competitive three-player market. “A nation of 1.4 billion people deserves three private telecom players,” said Birla.
