Vodafone Idea CEO Optimistic About Subscriber Loss Reversal Through FPO Fundraising

Vodafone Idea CEO Akshaya Moondra highlighted the successful allocation of the anchor book, attracting notable global and domestic investors, signaling a promising start to the fundraising initiative

Vodafone Idea CEO Akshaya Moondra anticipates the FPO to provide crucial funds for network expansion, aiming to stem the tide of subscriber erosion.

Source : Getty

Vodafone Idea CEO Akshaya Moondra has expressed optimism regarding the telecom company's forthcoming Follow-On Public Offering (FPO) as a potential solution to its ongoing subscriber loss. Buoyed by significant investor interest, Moondra anticipates the FPO to provide crucial funds for network expansion, aiming to stem the tide of subscriber erosion.

In an exclusive interview with PTI, Moondra highlighted the successful allocation of the anchor book, attracting notable global and domestic investors, signaling a promising start to the fundraising initiative.

VIDEO | Here's what #VodafoneIdea CEO Akshaya Moondra said on the Rs 18,000-crore FPO of the company.

"An important thing is that the allocation to hedge funds is less than 5 per cent which again is the representation of the strength of the (anchor) book. We have had a good… pic.twitter.com/CUBlWJcwC7

— Press Trust of India (@PTI_News) April 18, 2024

Moondra dismissed concerns about Vodafone-Idea's delayed entry into the 5G arena, citing the advantage of learning from market developments over the past 1-1.5 years. He highlighted the need for tariff adjustments, asserting that previous price hikes did not deter customers, suggesting a market readiness for further increases.

Addressing market speculations regarding potential collaborations with Starlink, Moondra reiterated denials and refrained from elaborating further. He praised government support and recent affirmations of commitment to Vodafone Idea's capital investment plans. The closure of the anchor book allocation, securing about Rs 5,400 crore from global investors, precedes the opening of the FPO to public investors. This marks the third-largest anchor book allocation, following One 97 Communications and Life Insurance Corporation (LIC), who raised Rs 8,235 crore and Rs 5,627 crore, respectively, during their anchor rounds.

Scheduled from April 18 to April 22, the Rs 18,000-crore FPO marks a significant financial manoeuvre for Vodafone Idea, enabling participation in the much-anticipated 5G rollout and fortification of 4G services.

Moondra said the imperative nature of investments to address coverage gaps and competitive disadvantages, positioning VIL for future market competitiveness.

The substantial fundraising efforts, complemented by recent capital infusions, position Vodafone Idea strategically in its battle for survival amid mounting debts and sustained quarterly losses. With the FPO on the horizon, Moondra remains hopeful that these initiatives will not only arrest subscriber loss but also reposition the company for sustained growth in the dynamic telecom landscape.