publive-image

Vodafone Idea Secures ₹5400 Crore Boost from Anchor Investors to Strengthen Telecom Operations

Vodafone Idea, on Wednesday, said it has successfully raised ₹5,400 crore from 74 anchor investors. These investors include GQG Partners, The Master Trust Bank of Japan, UBS, Morgan Stanley Banking Corporation, Citigroup Global Markets, Australian Super, Fidelity, Quant, and Motilal Oswal.

The telecom company offered 491 crore shares at Rs 11 per share to anchor investors. 26 percent or substantially all of the shares issued to the anchor investors have been allocated to US-based GQG Partners. The shares are valued at Rs 1,345 crore. Fidelity Investments invested about Rs 772 crore in FPO. True Capital and Australia Super will invest Rs 331 crore and Rs 130 crore respectively.

A significant portion, around 16.2 percent of Rs 874 crore, was allocated to domestic mutual funds, led by Motilal Oswal Midcap Fund with an investment of Rs 500 crore. The third-largest telecom operator plans to raise Rs 18,000 crore through India’s largest follow-up public offering, which will open on Wednesday, April 18.

The capital raised from this FPO will be earmarked for program implementation, including setting up of new 5G sites, expansion of existing 4G networks, and waiver of spectrum charges, as described in its Red Herring Prospectus (RHP). Rs,750 crore will be dedicated to the network establishment, including setting up 4G hubs, expanding or relocating existing ones, and setting up more 5G hubs.

For the next financial year, Vodafone Idea has plans to work on their 5G network by setting up 10,000 sites by FY25 with a budget of Rs 2,600 Cr, followed by 12,000 more sites for installation by FY26 with a budget of Rs 3,120 Cr - Rs 2,600

It will have 5G will account for 40% of the total income in the following 24-30 months and the preliminary availability will be in months 6-9 from successful revenue collection.

Conclusion: For anchor investors, Vodafone Idea’s successful capital raising is an important step towards achieving its long-term business objectives and becoming a formidable player in India’s competitive telecom landscape.