Vodafone Idea Ltd (VIL), which is planning to raise Rs 18,000 crore through a follow-on public offering (FPO), on Monday said it will launch 5G services after it completes the funding exercise.

The FPO will come in a price band of Rs 10-11 per share, and the offer will open on Thursday. It will close for subscription next Monday.

Vodafone Idea chief executive Akshaya Moondra said the company will roll out 5G services in select locations within six-nine months of raising the capital.

He said the introduction of 5G services is one of the objectives of raising the cash from the public and once the funding comes, it will start work on the rollout.

“With this round of funding, we believe we will be able to (come) back to participate in the industry growth which has not been possible,” he said.

The beleaguered telco has been losing subscribers to Reliance Jio and Airtel over the last few months.

Moondra said that VIL has not been able to roll out 5G services because of the lack of funds. The rollout will cover 40 per cent of the company’s overall revenue base in the next 24-30 months and will involve funding from banks.

The VIL CEO said the company has been in touch with the lenders, though he did not disclose the amount the telco will borrow.

An amount of Rs 5,720 crore from the FPO will be utilised for 5G rollout.

Ahead of the launch, the company has begun testing and has started conversations with vendors. Moondra declined to reveal the locations where the rollout will happen.

According to the VIL CEO, the company will focus on customer retention, increase the average revenue per user (ARPU) and network investments. The company has a high proportion of 2G subscribers. While 42 per cent of its over 215 million subscribers use the services only for 2G, they can be upgraded to 4G services for a better experience, he added.