GQG, SBI MF may invest up to ₹6,500 Crore in Vodafone Idea’s FPO, says Report

12 Apr 2024 , 04:17 PM

According to two persons familiar with the subject, investment company GQG Partners and State Bank of India Mutual Fund are considering investing up to $800 million (about ₹6,500 Crore) in Indian telecom operator Vodafone Idea’s $2.16 billion (₹18,000 Crore) share sale.

GQG, a US-based firm headed by Rajiv Jain, who hails from India, plans to invest approximately $500 million, while SBI Mutual Fund is considering investing between $200 million to $300 million in the follow-on public offering. Both sources, opting to remain anonymous due to the confidential nature of the plans, provided this information.

Debt-saddled Vodafone Idea was founded in 2018 when Vodafone Group combined its India business with Idea Cellular for $23 Billion.

The enterprise, wherein Vodafone holds over 25% ownership, ranks as India’s third-largest operator following declines in market share in recent years, trailing behind Reliance Jio and Bharti Airtel BRTI.NS.

It previously announced on Friday that the sale of fresh shares will take place between April 18 and April 22.

GQG and SBI Mutual Fund are exploring investing under the institutional quota in what will be India’s largest secondary sale. A final decision on their investments has not been made.

According to its recent regulatory filing, Vodafone Idea plans to utilize the funds for enhancing its 4G network, setting up 5G infrastructure, and clearing tax liabilities and dues.

Vodafone Idea’s stock ended at ₹13.15, up by 1.54% against its previous close of ₹12.95 on NSE. The counter touched an intraday high and low of ₹13.25 and ₹12.20 in today’s trade.

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