Vodafone Concept (Vi), the third-largest telecom operator within the nation, has raised round Rs 5,400 crore from anchor buyers. The telco is elevating a complete of Rs 45,000 crore by a mixture of fairness and debt. This Rs 5,400 crore got here from anchor buyers, by allocating 4,90,90,90,908 fairness shares at Rs 11 every. Vi plans to lift Rs 18,000 crore by FPO (Observe-on Public Supply). It should open on April 18 and shut on April 22.
The telco additionally raised Rs 2,075 crore from an Aditya Birla Group entity known as Oriana Investments Pte Restricted. It positively instilled confidence within the minds of the buyers and fund homes. With fundraising, Vodafone Concept will get a possibility to compete with Reliance Jio and Bharti Airtel on equal grounds.
Learn Extra – Vodafone Concept FPO to Elevate Rs 18000 Crore will Open on April 18, 2024
At the moment, Vi is shedding subscribers at an alarming tempo. That is due to inferior networks. The cash-strapped telco needs to lift funds to spend money on networks and probably roll out 5G sooner or later. The shortage of 5G can also be pushing clients in direction of Jio and Airtel, each of that are providing clients limitless 5G knowledge.
The lively subscriber base of Vi is underneath 200 million now and it’s falling additional. The general subscriber base is underneath 220 million. On the identical time, Jio has greater than 460 million customers whereas Airtel has greater than 380 million.
Learn Extra – Vi Misplaced a Million Wi-fi Customers in Feb 2024: TRAI Knowledge
A tariff hike within the close to future will hold buyers within the rising capability of Vi. With recent funds, Vi can probably make investments extra in networks and seize a number of the misplaced market share from its rivals. Cellular tariff hikes in India are anticipated after the competitors of basic elections. The telecom operators are more likely to enhance the tariffs by as much as 20% which can assist with boosting their common income per person (ARPU), one thing Vi wants desperately.
