Kumar Birla thanks government for its commitment to preserving a competitive 3-player market :-moneycontrol news April 25,2024

 

Birla thanks the PM, FM and Telecom Minister; calls Vodafone a national asset, in stakeholder address as NSE.

In his stakeholder address at the National Stock Exchange on the listing of the Vodafone Idea FPO, Kumar Mangalam Birla, Chairman of the Aditya Birla Group, thanked the government for its commitment to preserving a competitive 3-player market. “I thank the honorable Prime Minister Shri Narendra Modi ji, the Honorable Finance Minister Smt. Nirmala Sitharaman, and the Honorable Telecom Minister Shri Ashwin Vaishnaw for their leadership and unequivocal commitment to preserving a competitive 3-player market. The policy environment today encourages investment, innovation, and competition,” he said.

Birla said India’s digital economy was booming, and robust telecom networks are crucial to supporting this growth. “A nation of 1.4 billion people deserves 3 private telecom players,” he added. Besides, he said, Vodafone was not just a telecom company but a national asset. “Vodafone Idea, today, is not just a telecom company. It is a national asset — with 215 million users, about 8000 MHz spectrum, and a network that spans Kashmir to Kanyakumari.”

Also Read: Vodafone Idea shares list at 7% premium over FPO price, extend gains

He also emphasised Aditya Birla Group’s commitment to the telecom sector for over two and a half decades. Along with the partner, Vodafone Group, the group has cumulatively invested around Rs. 170,000 crore in the Indian telecom industry. Before this FPO, in the last 5 years, out of Rs 30,000 crore raised by the company, more than 75% came from the two promoter groups. The latest fund raise also saw an investment of over Rs 2,000 crore from the Aditya Birla Group, he said. “This continued commitment stems from our belief in the promise of the India digital story,” said Birla.

With a robust participation from marquee investors, the Vodafone FPO, raised Rs 18,000 crores in what is one of the biggest FPO ever floated in India. “The emphatic oversubscription of the FPO – with the overall book being subscribed 7 times and the institutional book being subscribed 19 times — demonstrates the tremendous potential of the India digital story and Vodafone Idea’s role in it. The robust engagement from both foreign and domestic investors is heartening. Notably, the full subscription of the retail portion is truly commendable, given the sheer scale of the offer,” said Birla.

On the utilisation of funds from the FPO, Birla outlined plans for significant capital expenditure aimed at network and technological upgrades. He expressed confidence in the company's ability to leverage this investment for operational efficiencies and improved performance. “The proceeds from this fund raise are earmarked for a significant capital expenditure cycle. 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. The cycle of investment will trigger the cycle of growth,” he said.