According to Kumar Mangalam Birla, Vodafone Idea is a national asset as well as a telecom corporation

According to Kumar Mangalam Birla, Vodafone Idea is a national asset as well as a telecom corporation

This week, Vodafone Idea earned Rs 18,000 crore via the largest-ever follow-on public offer (FPO) in India, thanks to a sizeable investment from institutional investors.

Vodafone is a national asset, not merely a telecom corporation, according to Kumar Mangalam Birla, Chairman of the Aditya Birla Group, during his stakeholder presentation at the National Stock Exchange on the offering of the Vodafone Idea FPO. These days, Vodafone Idea is more than simply a telecom provider. With 215 million subscribers, around 8000 MHz of spectrum, and a network that reaches from Kashmir to Kanyakumari, it is a valuable national asset.

He expressed gratitude to the administration for maintaining a three-player market that is competitive. "I express my gratitude to the esteemed Prime Minister, Shri Narendra Modi ji, the esteemed Finance Minister, Smt. Nirmala Sitharaman, and the esteemed Telecom Minister, Shri Ashwin Vaishnaw, for their exemplary leadership and unwavering dedication towards upholding a competitive three-player market." Today's legislative climate promotes competition, investment, and innovation," he said.

According to Birla, the digital economy in India is flourishing, and strong communication networks are essential to fostering this expansion. He went on, "A country of 1.4 billion people deserves three private telecom players." Additionally, he said that the Aditya Birla Group has been dedicated to the telecom industry for more than 25 years.

The Aditya Birla Group has made a total of almost Rs 170,000 crore in investments in the Indian telecom sector, together with partner Vodafone Group. Prior to this FPO, the two promoter groups contributed more than 75% of the Rs 30,000 crore that the business had raised in the previous five years. According to him, the Aditya Birla Group contributed more than Rs 2,000 crore to the most recent capital drive. "We remain committed because we believe that the India digital story has great potential," Birla said.

One of the largest FPOs ever to be launched in India, the Vodafone FPO collected Rs 18,000 crores thanks to strong participation from well-known investors. With 19 subscriptions for the institutional book and 7 subscriptions for the overall book, the FPO clearly oversubscribed, highlighting the enormous potential of the India digital narrative and Vodafone Idea's part in it. It is encouraging to see such strong participation from both local and international investors. Especially considering the scope of the offer, the retail portion's entire subscription is very remarkable, Birla said.

Regarding the use of FPO funding, Birla presented plans for large capital expenditures targeted at network and technology improvements. He conveyed trust in the organization's capacity to use this investment for enhanced performance and operational efficiency. "A major capital expenditure cycle is the intended use for the funds raised from this fund raising. This growing capital expenditure will open the door for a network and technology modernization in important areas. Better performance will follow from increased operational efficiency. Growth would occur as a result of the investment cycle, he said.