Kumar Birla expresses gratitude to PM Modi for its commitment to maintaining competitive market for 3-player

In his speech to stakeholders at the National Stock Exchange regarding the Vodafone Idea FPO listing, Kumar Mangalam Birla, Chairman of the Aditya Birla Group, expressed gratitude to the government for its commitment to maintaining a competitive market with three players. He specifically thanked Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman, and Telecom Minister Ashwin Vaishnaw for their leadership in this regard. Birla highlighted the conducive policy environment that fosters investment, innovation, and competition, stating, “The policy environment today encourages investment, innovation, and competition.”

Birla emphasized the significance of robust telecom networks in supporting India’s booming digital economy. He asserted that a country with a population of 1.4 billion deserves three private telecom players. Additionally, he underscored the importance of Vodafone Idea as a national asset, given its extensive user base, spectrum holdings, and nationwide network coverage.

Furthermore, Birla reiterated the Aditya Birla Group’s steadfast commitment to the telecom sector for over 25 years. Alongside its partner, Vodafone Group, the group has collectively invested approximately Rs. 170,000 crore in the Indian telecom industry. He noted that prior to this FPO, more than 75% of the Rs. 30,000 crore raised by the company in the last five years came from the two promoter groups. Birla also highlighted the Aditya Birla Group’s recent investment of over Rs. 2,000 crore in the latest fund raise, expressing confidence in India’s digital growth prospects.

The Vodafone FPO garnered significant interest from marquee investors, raising Rs. 18,000 crores, making it one of India’s largest FPOs. Birla commended the enthusiastic oversubscription of the FPO, reflecting the immense potential of India’s digital narrative and Vodafone Idea’s role therein. He praised the robust participation of both foreign and domestic investors, particularly applauding the full subscription of the retail portion despite the substantial offer size.

Regarding the utilization of funds from the FPO, Birla outlined plans for substantial capital expenditure aimed at network and technological enhancements. He expressed confidence in the company’s ability to leverage this investment to improve operational efficiencies and performance, stating, “The proceeds from this fund raise are earmarked for a significant capital expenditure cycle.”