Vodafone-Idea (VI), a telecom business that is in financial distress, has stated that it will make a follow-on public offer (FPO) of Rs 18,000 crore. The dates of this FPO's opening are April 18–22. On the 16th, anchor investors will have the opportunity to bid concurrently for this FPO. Information regarding this has been provided by the company in its exchange filing.
Vodafone Idea has established a set price range of ₹10 to ₹11 for their FPO. Investors may place a bid for as few as one lot, or 1298 shares. In this case, your investment will be ₹ 14,278 if you apply for 1 lot at the ₹ 11 higher price band set by the FPO.
Vodafone Idea will communicate with analysts and investors.
According to the company's exchange filing, the board approved the acceptance and submission of the Red Herring Prospectus (RHP) with the Gujarat Registrar of Companies on April 11, 2024. From April 15 until the end of the offer, Vodafone Idea will engage with analysts and investors through a road show.
The shareholders just gave their approval to raise money.
Vodafone Idea's shareholders have authorized raising Rs 20,000 crore through equity and equity-linked securities. The company plans to deploy 5G and enhance 4G service with this funding, according to media sources.
In addition, the company will be able to better serve customers and enhance its competitive positioning thanks to this fundraising.
The largest FPO to date is this one.
The largest FPO to date is this one. Right now, Yes Bank's FPO, which was valued at Rs. 15,000 crores, is the biggest in the Indian market. In January of last year, Adani Enterprises, on the other hand, brought in an FPO valued at Rs 20,000 crore. The business later withdrew it, though. Adani Enterprises would have been the biggest corporation to introduce FPO if it hadn't taken that action.
FPO: What is it?
A firm that is already listed on the stock exchange can issue fresh shares to investors or current shareholders, typically promoters, through a process called a follow-on public offer (FPO). Put simply, firms that are listed on a stock market raise money through the secondary market by issuing new shares.
The debt owed by Vodafone Idea is Rs 210,000 crore.
Vodafone Idea has a debt of Rs 210,000 crore and is having financial difficulties. In order to remain competitive, Vodafone Idea plans to enhance both its core infrastructure and service offerings (Jio and Bharti Airtel). At the moment, the business lags well behind major rivals like Bharti Airtel and Reliance Jio.
In the December quarter, Vodafone Idea's total net loss decreased to Rs 6,986 crore.
Compared to Rs 7,990 crore in the previous year and Rs 8,738 crore in the preceding quarter, Vodafone Idea's combined net loss decreased to Rs 6,986 crore in the quarter that ended in December. In addition, the business has demonstrated several encouraging traits.
In the past year, the number of 4G users has climbed from 121.6 million to 125.6 million. For ten straight quarters, the company has seen an increase in both its 4G client base and average revenue per user (ARPU).
