FPO marks the start of Vodafone Idea 2.0, says Kumar Mangalam Birla
Vodafone Idea’s ₹18,000-crore follow-on public offer, India’s largest FPO to date, marked a turning point for the telecom industry. Calling the third-largest carrier a ‘national asset’, he said Vodafone Idea would stage a smart turnaround on the back of the fundraise and support from banks. “This moment in some ways marks the beginning of Vodafone Idea 2.0.
I believe that a revitalised Vodafone Idea is important for India," he said. Shares of Vodafone Idea Limited opened at ₹11.80 on the NSE on Thursday, a premium of 7.2% over the issue price of ₹11, after its FPO shares listed on the bourses. “The fact that so many marquee investors participated in this equity issuance is a testament to the government’s vision of a digital India," Birla said.
He said the oversubscription to the FPO (it was subscribed seven times and the institutional portion 19 times), demonstrated India’s tremendous potential and Vodafone Idea’s role in it. “The robust engagement from both foreign and domestic investors is heartening. The full subscription of the retail portion is truly commendable, given the sheer scale of the offer," he added.
Also read: Vodafone Idea’s post-FPO priority: Clearing vendor dues Birla thanked the government for the company's reform package and its "commitment to preserving a competitive three-player market", saying it was transformational for the entire sector. The government is the single largest shareholder in the telco. Birla added that the Aditya Birla Group and Vodafone Group had cumulatively invested around ₹170,000 crore in the Indian telecom industry.
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