MUMBAI: VodafoneGroup Plc pumped a record Rs 47,700 crore of overseas investment into its Indian operation, slashing the unit’s debt by half, priming it for the upcoming spectrum auction and ensuring battle-readiness in the fight for market share as Reliance Jio Infocomm enters the fray.The capital infusion, which involves converting loans to shares in the first half of the fiscal in the country’s second-biggest phone company, “will enable Vodafone India to continue its investments in spectrum and expansion of networks across various technology layers”, said Chief Executive Sunil Sood. This is the largest foreign direct investment (FDI) in India in rupee terms, exceeding BP’s $7.2-billion purchase of a stake in Reliance Industries To put things in perspective, third ranked telco Idea Cellular ’s market value at close of trade on Thursday was Rs 31,000 crore on the Bombay Stock Exchange while Reliance Communications was just over Rs 12,100 crore. Leader Bharti Airtel was at nearly Rs 1,30,795 crore. Vodafone’s investment in India since 2007 amounted to Rs 1.15 lakh crore at the end of March.The infusion brings the company’s net debt down to Rs 34,300 crore and cuts the debt to equity ratio by half, said Sood. At the end of the last financial year, this stood at Rs 81,500 crore, leaving little free cash.“We are judiciously deploying a portfolio of technologies — 2G, 3G, 4G and IoT (Internet of Things) — to cater to the myriad connectivity needs of our retail and enterprise customers across the country,” Sood said. The carrier’s subscriber base has crossed 200 million, against Bharti Airtel’s 250 million.ET had reported in its edition on September 14 that Vodafone was looking to make an infusion into the India unit to replace debt to increase its competitiveness.The move signals Vodafone’s aggressive intent in the spectrum auction that’s set to start October 1, especially for 4G airwaves, experts said. “Vodafone needed it (infusion). We have seen others increasing capex and Vodafone doesn’t have that pan-India 3G/4G network that it will need,” said Kunal Bajaj, an industry consultant.The mobile phone operator has 4G spectrum in nine of the country’s 22 circles, with operations in eight, lagging behind Jio and market leader Bharti Airtel’s pan-India holdings. India is set to sell spectrum, valued at Rs 5.6 lakh crore at the reserve price, including airwaves in the 4G and 3G bands. Besides 4G, analysts said Vodafone may buy 3G airwaves to plug coverage gaps.Brokerage PhillipCapital expects Vodafone to spend about Rs 11,300 crore in the upcoming auction, more than its rivals Jio, Airtel and Idea Cellular.Vodafone has struggled in the past few years with challenger Idea Cellular gaining over it in many areas but Sood said his company had gained a 0.6 percentage point market share in the last half year.The company’s global management recently acknowledged at a conference that Vodafone India needed to strengthen its 4G holdings to be competitive, said a person aware of the matter.The parent also indicated that it would delay plans to cease funding the Indian arm, he said.Earlier this year, Vodafone India had initiated the process to launch an initial public offer, widely seen as a move to raise money for the spectrum auction without tapping its parent.On Thursday, the company didn’t divulge any specific details on the IPO but said plans are on track. Analysts are skeptical about an IPO.“They (Vodafone Plc) may have thought the IPO would happen sooner, but now that it hasn’t, this (infusion) was necessary,” said Bajaj.Pressure on telecom stocks because of the Jio launch makes a public offer unlikely right now.The conversion frees up borrowing capacity and boosts credibility in terms of the parent’s firm backing for its Indian unit, said a banker.Vodafone is in a long-running dispute over a tax demand of around Rs 20,000 crore, including penalties and interest, related to the acquisition of Hutchison’s stake in the company in 2007.Prashant Singhal of E&Y said: “The industry will need a further investment of $10-12 billion and such conversions increase the borrowing capabilities of companies to meet such investment needs.”