Investment firm GQG Partners and State Bank of India Mutual Fund are contemplating investments totalling up to $800 million in the upcoming $2.16 billion share offering by telecom giant Vodafone Idea, according to two sources familiar with the matter.

GQG Partners, led by Rajiv Jain, is reportedly considering a substantial investment of around $500 million, while SBI Mutual Fund is evaluating an investment ranging between $200-300 million in the follow-on public offering. Sources preferred to remain anonymous due to the confidentiality of the plans.

When approached for comments, representatives from GQG and SBI declined to provide any official statements, while Vodafone Idea did not respond to queries seeking comment.

Vodafone Idea, burdened by debt, emerged in 2018 from the merger of Vodafone Group's India business with Idea Cellular in a massive $23 billion deal. Despite its formation, the company has faced stiff competition from Reliance Jio and Bharti Airtel, resulting in a loss of market share over the years.

The telecom firm announced earlier on Friday that the sale of new shares is scheduled to take place from April 18 to April 22.

The potential investments by GQG and SBI Mutual Fund fall under the institutional quota of what is anticipated to be India's largest secondary offering. However, a final decision on their participation is yet to be confirmed.

Vodafone Idea intends to utilise the proceeds from the share sale to bolster its 4G network infrastructure, establish 5G networks, and fulfil tax and dues obligations, as indicated in its regulatory filing earlier this week.

(With Reuters inputs)