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Investors are betting on long-term story in the Indian telecom space, says BofAML

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After the Rs 25,000-crore rights issue of Vodafone Idea subscribed 1.07 times, Bank of America Meryll Lynch (BofAML) on Friday said investors are betting on a long-term story in the Indian telecom space.

After the Rs 25,000-crore rights issue of Vodafone Idea subscribed 1.07 times, Bank of America Meryll Lynch (BofAML) on Friday said investors are betting on a long-term story in the Indian telecom space.
The rights issue, which ran between April 10 and April 24, the country's largest telecom operator offered 2,000 crore new shares at Rs 12.50 apiece.
In an interview to CNBC-TV18's Nisha Poddar, Raj Balakrishnan, managing director, said, "The rights issue including the amounts received through the Application Supported by Blocked Amount (ASBA) route, which is reflected on the stock exchange website and amounts received through non-ASBA paper applications based on the preliminary data  suggested that the issue has been fully subscribed."
"Based on the data in the BSE, there has been a large volume of rights renunciation trading, which is more than the amount, which Axiata needed to renounce. So yes, based on that data, I do believe it has been taken up fully," he said.
"We have done a couple of large deals. We did the offer-for-sale (OFS) for HDFC Life and Embassy-Blackstone Real Estate Investment Trust (REIT) offering. Also, many deals are in the pipeline. So from that perspective, I do think there is strong investor appetite for Indian paper,” he further mentioned.