Vodafone Idea’s FPO to Open on April 18: Investors Can Bid Until April 22, Minimum Bid at ₹14,278
Vodafone Idea (VI) has announced a follow-on public offering (FPO) aimed at raising a staggering ₹18,000 crores amidst intense financial scrutiny in the telecom sector. Scheduled to open from April 18th to April 22nd, the FPO has attracted anchor investors who can bid starting from April 16th. The company has disclosed this information in its exchange filing.
Setting the price band for its FPO between ₹10 to ₹11, Vodafone Idea allows bidders to bid for a minimum lot size of 1,298 shares. For those interested in bidding at the upper price band of ₹11, it translates to a minimum bid of ₹14,278 for one lot. These details underscore the financial dynamics surrounding Vodafone Idea’s strategic move in the telecom market.
Discussion Between Vodafone Idea Investors and Analysts
On April 11, 2024, Vodafone Idea’s board secured approval and filed the Red Herring Prospectus (RHP) with the Registrar of Companies, Gujarat. The company has made this disclosure in its exchange filing.
Starting from April 15, Vodafone Idea will organize a roadshow for its offer, wherein investors and analysts will engage in discussions until the conclusion of the offering.
Recent Approval for Fundraising
Recently, shareholders of Vodafone Idea approved raising Rs. 20,000 crores through equity and equity-linked securities. According to media reports, the company intends to utilize these funds for the rollout of 5G and enhancing its 4G services.
This infusion of funds is expected to bolster the company’s competitive position and provide better customer experiences.
The Largest FPO to Date
This is the largest FPO to date. Currently, the largest FPO in the Indian market was by Yes Bank, valued at Rs. 15,000 crores. When Adani Enterprises went public in January, it had brought in an FPO worth Rs. 20,000 crores.
However, the company later withdrew it. If it hadn’t been withdrawn, Adani Enterprises would have become the largest company to bring an FPO to the market.
What is an FPO?
A Follow-on Public Offering (FPO) is a process where already listed companies on the stock exchange issue new shares to existing shareholders or the general public, typically for promoters.
Simply put, listed companies in the share market raise funds by issuing new shares in the secondary market.
Vodafone Idea’s ₹2,10,000 Crore Debt Burden
Vodafone Idea grapples with financial woes, burdened by a staggering ₹2,10,000 crore debt. In a bid to compete with its rivals, namely Jio and Bharti Airtel, the company demands improvements in its services and fundamental infrastructure.
Presently, the company lags significantly behind major competitors like Reliance Jio and Bharti Airtel.
Vodafone Idea’s Consolidated Net Loss Decreases to ₹6,986 Crore in December Quarter
Vodafone Idea’s consolidated net loss for the December quarter has reduced to ₹6,986 crores, compared to ₹7,990 crores in the previous year and ₹8,738 crores in the preceding quarter. The company has also shown some positive indicators.
In the last year, the 4G customer base has increased from 121.6 million to 125.6 million. The company has consistently focused on increasing its 4G customer base and improving the Average Revenue Per User (ARPU) over the past ten quarters.
