The chairman of India's largest lender State Bank of India, Dinesh Kumar Khara has attributed the trust shown by investors to the Vodafone Idea's follow-on public offer (FPO) to the personal commitment and capital infused by Kumar Mangalam Birla in the company.
Speaking at the listing of the the Vi's FPO shares at an event on the NSE, State Bank chairman DK Khara said, "The leap of trust seen from the larger investor community is essentially attributed to his (KM Birla) assuming the chairmanship of the company, and showing the way as to what should be done. It is also an unflinching commitment to the telecom sector that he has demonstrated by putting in his personal money as well as sourcing capital across the globe."
"The nation needs at least three telecom operators, this was the wish from the government of India, but I think all that could not have happened, unless and until, Mr. Birla would have shown the way," chairman Khara added.
SBI chairman thanked Kumar Mangalam Birla for ensuring that the sector continues to flourish and appealed domestic investors to participate in the growth of the telecom space.
"With the opportunities that exists in the country, if our own investors would not be there, the sector will go away to foreign investors. Not that we are against them, we welcome them, but at the same time, as proud Indians, we should also be the beneficiaries of the growth which will be seen in the sector," DK Khara added.
The Rs 18,000 crore follow-on offer - India's largest ever - saw an overall subscription of seven times with institutional book being subscribed 19 times. At the listing event of the FPO shares, Aditya Birla Group chairman Kumar Mangalam Birla said the success of the public offer marks the beginning of Vodafone Idea 2.0, which will stage a "smart turnaround."
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