Vodafone Idea, currently ranked as the third-largest telecom operator in India, has successfully secured Rs 5,400 crore from 74 anchor investors, according to a recent press statement released on Wednesday.

This significant capital influx comes as part of the company's ambitious plan to raise a total of Rs 18,000 crore through what is set to be India's largest follow-on public offering (FPO), scheduled to open on Thursday, April 18.

The roster of anchor investors includes prominent names such as GQG Partners, The Master Trust Bank of Japan, UBS, Morgan Stanley Investment Management, Citigroup Global Markets, Australian Super, Fidelity, Quant, and Motilal Oswal.

In a strategic move, Vodafone Idea allocated a hefty 491 crore shares at Rs 11 each.

Notably, GQG Partners from the United States was the largest single recipient, securing 26 per cent of the total shares allocated to anchor investors, which are valued at Rs 1,345 crore.

Other significant investments included Fidelity Investments, which contributed approximately Rs 772 crore, Troo Capital with Rs 331 crore, and Australian Super with an investment of Rs 130 crore.

Additionally, domestic participation was robust, with five Indian mutual funds accounting for 16.2 per cent of the total anchor allocation, summing up to Rs 874 crore.

Leading this group was the Motilal Oswal Midcap Fund, which alone invested Rs 500 crores.

This FPO, with a price band of Rs 10-11 per share, will conclude on April 22. Vodafone Idea has outlined a comprehensive plan for the use of the raised capital, as detailed in its red herring prospectus (RHP).

The company intends to allocate Rs 12,750 crore towards expanding its network infrastructure. This includes the establishment of new 4G sites, enhancing the capacity of existing ones, and the rollout of new 5G sites.

Out of this earmarked amount for network expansion, Rs 5,720 crore will specifically focus on the development of the 5G network.

The company's strategic roadmap for the fiscal years 2025 and 2026 includes setting up 10,000 new 5G sites with an investment of Rs 2,600 crore and 12,000 sites with a further Rs 3,120 crore, respectively.

Vodafone Idea's management has projected that within the next 24-30 months, 40% of its subscriber base generating the company's revenue will have access to 5G services.

They anticipate the commencement of 5G service rollouts in select areas within 6-9 months following the funding achieved through this issue.

In a press briefing, company executives expressed optimism that the Rs 18,000 crore raised would significantly enhance Vodafone Idea’s competitive edge against its rivals in the telecom sector and facilitate a substantial reduction in its bank debt.

This financial restructuring is expected to enable the company to secure additional funding from banks in the future.

However, despite these positive developments, analysts remain cautious, suggesting that while the company's position will improve, they do not foresee Vodafone Idea capturing a substantial market share from its competitors.