M. Sriram
MUMBAI (Reuters) – Investment firm GQG Partners and State Bank of India mutual fund are considering investing a total of up to $800 million in the Indian telecom company’s $2.16 billion share offering. Vodafone (NASDAQ:) idea, according to two people familiar with the matter.
US firm GQG, run by Indian-born Rajeev Jain, plans to invest about $500 million, while mutual fund SBI is considering investing $200-$300 million in a follow-on public offering, said both people, who declined to participate in the public offering. placement of shares. named because the plans are confidential.
GQG and SBI declined to comment, while Vodafone Idea did not respond to queries seeking comment.
Debt-ridden Vodafone Idea was founded in 2018 when Vodafone Group (LON:) merged its India business with local billionaire Idea Cellular in a deal worth $23 billion.
The company, in which Vodafone owns more than 25%, is India’s third-largest operator after Reliance Jio and Bharti Airtel, which have snatched market share from it in recent years.
Earlier on Friday, the company said the sale of new shares would run from April 18 to April 22.
GQG and SBI Mutual Fund are considering investing under the institutional quota of India’s largest secondary offering. A final decision regarding their investment has not yet been made.
Vodafone Idea plans to use the funds to expand its 4G network, build 5G networks, pay taxes and duties, the company said in a report this week.