Kumar Mangalam Birla Says Promoters Invested Rs 1.7 Lakh Crore In Indian Telecom Sector

The Aditya Birla Group and UK-based Vodafone Group have invested nearly Rs 1.7 lakh crore in Vodafone Idea Ltd. and the Indian telecom industry, Kumar Mangalam Birla said.

“The Aditya Birla Group, as you all know, has remained committed to this sector for over two and a-half decades now,” Birla, chairman of Aditya Birla Group, said during the listing of its follow-on public offer on the exchanges.

The company has successfully raised Rs 18,000 crore through a follow-on public offer. Marquee investors like GQG, Fidelity Funds and Redwheel Funds have subscribed to the offer through the anchor book.

“Before this FPO, in the last five years, out of Rs 30,000 crore raised by the company, more than 75% has come from the two promoter groups,” Birla said.

The Aditya Birla Group has invested Rs 2,075 crore in the latest fundraise as well.

The company plans to use the proceeds of the FPO towards the launch of 5G services and further capex. Its debt payments will be at least Rs 30,000 crore (this excludes the new debt it plans to take) from the next financial year, after the moratorium on AGR dues is lifted.

This growth capex will pave the way for a network and technological upgrade across key markets. And this, in turn, will enhance operational efficiencies and lead to better performance, Birla said, adding that the cycle of investment will trigger the cycle of growth.

“On the back of this fundraise 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,” he said.

Shares of Vodafone Idea closed 5.34% higher on Thursday, as compared with a 0.75% gain in the benchmark Nifty 50.