- Investment firm GQG Partners and State Bank of India Mutual Fund are contemplating investing up to $800 million (approximately Rs 6,500 crore) collectively in the $2.16 billion (Rs 18,000 crore) share offering of Vodafone Idea, an Indian telecom company.
- GQG, led by India-born executive Rajiv Jain, plans to inject about $500 million, while SBI Mutual Fund is considering an investment range of $200-300 million in the follow-on public offering.
- The investment plans are confidential, as disclosed by two anonymous sources familiar with the matter. GQG and SBI have refrained from commenting on the matter, and Vodafone Idea has not responded to queries.
- Formed in 2018 through the merger of Vodafone Group’s India business and Idea Cellular in a $23-billion deal, Vodafone Idea is weighed down by debt.
- Despite being India’s third-largest operator, Vodafone Idea has seen its market share eroded by competitors like Reliance Jio and Bharti Airtel in recent years.
- The sale of new shares by Vodafone Idea is scheduled to take place from April 18 to April 22.
- The investments by GQG and SBI Mutual Fund would fall under the institutional quota of what is expected to be India’s largest secondary offering.
- Vodafone Idea intends to utilize the raised funds for expanding its 4G network, establishing 5G infrastructure, and clearing taxes and dues, as outlined in its regulatory filing.
Important Points:
- GQG Partners and SBI Mutual Fund are contemplating significant investments in Vodafone Idea’s share offering.
- The investment amounts are substantial, with GQG eyeing around $500 million and SBI Mutual Fund considering an investment range of $200-300 million.
- The plans are confidential, and neither GQG nor SBI has officially commented on the matter.
- Vodafone Idea aims to utilize the funds raised from the share offering for various purposes, including network expansion and debt repayment.
- The share offering is expected to be India’s largest secondary offering, indicating significant investor interest.
