Vodafone Idea eyes 5G rollout in 6-9 months after FPO, aims to raise Rs 18,000 crore

Vi 5G roll out: In a move to strengthen its position in the Indian telecom market, Vodafone Idea (Vi) has announced plans to roll out 5G services in select markets within 6-9 months of completing its upcoming Rs 18,000 crore Follow-on Public Offer (FPO).

FPO to fuel 5G dreams

Vi CEO Akshaya Moondra highlighted 5G rollout as a key objective behind the FPO. The raised capital will be directed towards network upgrades and infrastructure development to facilitate the launch of 5G services. The rollout is expected to cover areas that contribute to 40 per cent of Vi's current revenue base within the next 2-2.5 years. Specific rollout timelines and targeted locations were not disclosed.

Playing catch-up in the 5G race

Moondra acknowledged that Vi has lagged behind competitors like Bharti Airtel and Reliance Jio in deploying 5G services due to financial constraints. However, the company has already initiated preparatory measures, including allocating Rs 5,720 crore for the rollout and commencing vendor discussions and testing procedures.

FPO details and market Response

Vi's FPO, the largest in India's history after Adani Enterprises' recent withdrawal, is set to open for subscription on April 18th. The company has established a price band of Rs 10 - Rs 11 per share. The Vi share price on the BSE witnessed a positive response, rising 0.93 per cent to Rs 13.08 as of Monday, 1.35 PM.

Looking ahead

The success of Vi's FPO is crucial for its plans to compete effectively in the burgeoning Indian 5G market. The additional capital will enable the company to invest in network infrastructure, acquire necessary technology, and potentially offer competitive 5G data plans to attract customers. Investors are closely watching the FPO, with the company actively engaging in roadshows and investor interactions to garner interest.