In an official proclamation, VIL expressed that two of India’s most cherished brands “Vodafone and Idea” are now ‘together for tomorrow’ bringing for another brand called ‘Vi’, which is perused as ‘We’.
Vodafone Idea Ltd on Monday September 7, 2020 rebranded itself as ‘Vi’, making a brought together character two years after the merger of past Vodafone India Ltd and Idea Cellular Ltd. The organization named the rebranding as the last advance towards coordinating the two brands, which have had limitlessly various offers among client sections. The new brand personality has been embraced remembering the future which is worked for the customers.
The new brand identity bound together buyer situating was dispatched by Vodafone Idea Limited (VIL) through a virtual dispatch. “The mix of the two brands is a zenith of the biggest telecom integration on the planet,” said Ravindar Takkar, CEO, Vodafone Idea. Ravindar Takkar also stated that “It is the ideal opportunity for a new beginning.”
The chairman Kumar Mangalam Birla wrote a small note to the shareholders in the company of annual reports saying that “Your company is also commencing on a new brand identity to mark the culmination of the integration exercise bringing customers the best of the both brands”.
The rebranding comes one after another the organization hopes to raise up to ₹25,000 crore to meet government contribution, pay premiums, and put resources into tasks. Vodafone Idea will at first raise cross breed obligation through convertible bonds.
The main Ideology of Vi:
The new and advanced Vi brand personality intends to situate itself as a solid, ever-reliable, light-footed and instinctive brand, which is on top of the customer needs in the ever-changing current occasions. The Vi brand has been intended to assist customers with pushing forward for a superior today and more brilliant tomorrow. Vi means to be a future perused brand that is focused on progressively serving a computerized society to advance throughout everyday life. The brand mix denotes the culmination of the world’s biggest telecom merger. It additionally denotes the start of another excursion to offer world class digital experience explaining to 1 billion Indians with their solid 4g network.
Vodafone Idea’s convertible bonds will offer a yearly return of at any rate of 10% like an ordinary bond. The organization’s proposed hybrid bonds which will have term of around 10 years. The issuance will happen within the next 3-4 months,” one of the two people said. The odds of a worth monetary financial specialist will improve once the firm can improve its Ebitda, which at the current level isn’t adequate to attempt and organize the record costs on its outright commitment which exceeds ₹1.2 trillion.
Sudip Bandyopadhyay, group administrator of the financial progress, Inditrade Capital Ltd. said,” There is an ideal structure of a versatile cling to accumulate promises in VIL at this crossing point. It’s similar to a beginning up with risk and uncertainties around its possible endurance. Post the first round of convertible security raise, the business can focus on operational efficiencies and raising of ARPUs. Then the following round of assets can come through equity.”
The Vodafone Idea telecom kept up two unique brands withstanding merger over the most recent two years, which saw a fall in its client base. A consolidated new brand character is required to draw in more endorsers and represent a greater rivalry to its adversaries – Reliance Jio and Bharti Airtel. Takkar said that all the choices are guarded with the help of financial specialists. He also said that the absolutely need the normal income per customer to improve to ₹200.
The organization is planning to raise $2.5 billion through convertible securities, to be followed by a $2.5 billion through a certified institutional arrangement (QIP) of shares, two people aware of the funds raising plans said. Vodafone Idea is working with InCred Capital for organizing the arrangement.
The convertible obligations of Vodafone Idea will have a component of obligation and an alternative to change over 25% of the sum into value at a higher cost than normal to the stock on the date when the transformation choice is decided on. The bonds will gain the potential Vodafone Idea speculators a fixed intrigue salary consistently and an arrival of the chief sum along with a premium on the date of development.
The $2.5 billion from the convertible bond issuance will be utilized principally for paying standard range charges and meet working capital needs. Once ARPU and incomes improve after reexamining the duties, the borrowings will be step by step paid off.
During the dispatch of Vi, Vodafone Idea Limited CEO &MD Ravinder Takkar expressed that the new brand ‘Vi’ will expect to carry significant importance to the lives of its customers. He said that Indians are hopeful and need to excel throughout everyday life and they would adore a valid accomplice to help on this journey. Takkar expressed that Vi’s situation is working around this new project and it will focus on meeting the customer needs and enable them to flourish.
Vodafone and Idea had consolidated together as one element two years prior on August 31, 2018. The merger had prompted the creation of India’s largest telecom service cooperation with more than 408 million subscribers and supporters. The merger prompted the renaming of Aditya Birla Group drove Idea Cellular as Vodafone Idea Limited. Under the merger, it was decided that both Vodafone and Idea brands will keep on working like previously.
The client base of Vodafone-Idea saw a significant dive in June 2020 when it fell to nearly 280 million from prior 408 million. The revenue market share of the organization additionally plunged by 448 premise focuses, consecutively to 23.3% in the April-June quarter. Then again, market pioneer Reliance Jio had successive development by 702 bps to 41.8 percent income of the overall industry in the April June quarter. So, this new commitment of Vi may bring many new changes in the next era of technology.