Rajiv Jain’s GQG Companions LLC is trying to make investments round $400 million in Vodafone Concept Ltd.’s share sale that begins later this week, in accordance with individuals acquainted, in a vote of confidence within the unprofitable Indian wi-fi operator.
GQG will place bids for fairness value at the least $300 million and as a lot as $400 million in a follow-on public provide being floated by the three way partnership between Vodafone Group Plc and the Aditya Birla Group, stated individuals acquainted with the discussions who didn’t wish to recognized as the knowledge is just not public. Different institutional traders are additionally anticipated to purchase into the sale, they added.
The $2.2 billion share sale, which is able to begin on April 18 and shut April 22, has a flooring worth of 10 rupees (12 cents) per share and a ceiling worth of 11 rupees, the Mumbai primarily based agency stated in alternate filings final week.
Representatives of Vodafone Concept and GQG Companions didn’t provide any speedy feedback.
The backing from GQG is a significant shot within the arm for Vodafone Concept. The telecom operator has been affected by monetary losses and an eroding subscriber base as customers switched to stronger rivals, Reliance Jio Infocomm Ltd. and Bharti Airtel Ltd.
Whereas it hasn’t reported an annual revenue since 2016, latest feedback by the Indian authorities that it received’t enable a duopoly within the Indian telecom sector has bolstered investor hopes that Vodafone Concept will survive and stage a comeback.
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The Indian authorities emerged as Vodafone Concept’s largest shareholder in 2022 when the wi-fi operator transformed the dues it couldn’t pay to the administration right into a 36% stake. The smallest of India’s three non-public sector wi-fi operators, it has struggled to improve its infrastructure whereas Reliance Jio and Bharti have quickly rolled out their 5G networks throughout the nation, luring subscribers away.
Jain’s GQG has been within the highlight for investing in a number of Adani Group companies in March 2023, weeks after they have been thrashed by a stinging quick vendor report. The worth of GQG’s stake in Adani shares has grown about fivefold inside a 12 months, making these one of many many profitable picks for the Florida-based funding agency in India.
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