SBI chairman: FPO will place Vodafone-Idea on a growth path.
Prior to this, the board of Vi had authorised the issuance of preferential shares to raise Rs 2,075 crore from an Aditya Birla Group (ABG) subsidiary. This action had prepared the ground for a larger finance programme that was essential to the company’s recovery.
The chairman of State Bank of India praises Vodafone-Idea’s FPO success as evidence of investors’ faith in Aditya Birla Group leadership:
Kolkata: The success of Vodafone-Idea’s follow-on public offer (FPO) underscores the “leap of trust” of the larger investor community that results from Aditya Birla Group chairman Kumar Mangalam Birla assuming chairmanship of the cash-strapped telco. According to SBI chairman Dinesh Kumar Khara, this will put the telco on a different trajectory.
“We as bankers have lived through and considered the concerns relating to the entity (read: Vi), which it has gone through but I am very happy that the outcome has been nothing but a reflection of the trust and confidence shown by Mr Birla himself,” Khara stated. Speaking on Thursday at an event to commemorate Vi’s FPO listing on the NSE was the chairman of SBI.
Aditya Birla’s dedication and leadership: a driving force behind investor trust in the growth of the telecom and VI industries
He continued by saying that Birla taking over as chairman of Vi and setting an example for what should be done is ultimately responsible for “the leap of trust” witnessed from the broader investor community. He has also shown an unwavering dedication to the telecom industry by investing his own money and obtaining funding from all across the world. It’s a significant recognition, in my opinion.
According to Khara, the government also feels that the country needs at least three commercial telecom companies. “But I think all that could not have happened unless Mr Birla would have shown his support.”
Vi’s Strategic Funding Campaign: From Debt Issuance to FPO and Preferential Shares
Prior to this, the board of Vi had authorised the issuance of preferential shares to raise Rs 2,075 crore from an Aditya Birla Group (ABG) subsidiary. This action had prepared the ground for a larger finance programme that was essential to the company’s recovery.
Vi is anticipated to follow up its debt offering of Rs 25,000 crore with an FPO, which will enable the telecom company raise the Rs 45,000 crore it needs to get back on track financially and compete with more established and profitable rivals like Reliance Jio and Bharti Airtel.
The chairman of SBI believes that digital technology will shape the nation’s opportunities in the future. “Foreign investors would have taken over the sector if our own investors had not been present. Not that we oppose it; in fact, we welcome them, but as patriotic Indians, we should also profit from the sector’s anticipated growth.”
He went on to say that retail investors’ involvement in the fully subscribed section of the Vi FPO is a testament to their faith in the Aditya Birla Group.
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