Strong signal for telecom sector after successful Vodafone Idea FPO

VIL's successful FPO has a direct positive impact on Indus Towers

The success of the massive Vodafone Idea (VIL) follow-on public offer (FPO), which raised Rs 18,000 crore, coupled to a subscription of fresh equity worth Rs 2,075 crore by an Aditya Birla group company has triggered some optimism about the telecom sector.

VIL intends to raise around Rs 25,000 crore from the market. If it can utilise the funds to roll out 5G and strengthen its 4G presence (around Rs 12,700 crore is allotted to network capex), the threat of India’s telecom services market turning into a duopoly recedes. Among the other private telecom service providers, Reliance Jio (Jio) did