Vodafone Idea to raise Rs 25,000-cr to fend off Mukesh Ambani's Reliance Jio
The move may rile Asia's richest man Mukesh Ambani, who coined Reliance Jio that provides 4G internet at a price that can make most of the carriers operating overseas bankrupt.
In a bid to take on Mukesh Ambani's Reliance Jio the Vodafone Idea Ltd. is planning to raise Rs 25,000 crore ($3.5 billion) through right offerings. The move may rile Asia's richest man Mukesh Ambani, who coined Reliance Jio that provides 4G internet at a price that can make most of the carriers operating overseas bankrupt. The Vodafone idea is also mulling to sell out its 11.5 per cent share in Indus Tower Ltd. — a cell phone tower jointly owned by Aditya Birla Telecom and Bharti Infrtel Ltd.
As quoted by Bloomberg, "Vodafone Group Plc will contribute as much as 11,000 crore rupees, while India’s Aditya Birla Group will pump in as much as Rs 7250 crore."
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The Vodafone Idea move to rile Mukesh Ambani by taking on his ambitious Reliance Jio venture may spike another price war in tlecome sector but ultimate beneficiary of this price war would be the users, who can expect to have some more better price than Reliance Jio in coming days
The move underlines how Indian operators are finding out ways to figure out innovations and ideas to compete against Mukesh Ambani's Reliance Jio Infocomm Ltd. The Reliance Jio Infocomm is offering a package which has enough data which allowed its users to watch 46 hours of YouTube videos at a price of $2 per month.