Vi stock surges 12% day after success of Rs 18,000 crore FPO

economictimes.indiatimes.com:

Vodafone Idea (Vi) surged nearly 12% on BSE on Tuesday, a day after successfully closing its ₹18,000 crore follow-on public offer (FPO), lifting investor hopes of the cash-strapped telecom company.

The FPO is expected to be followed by a ₹25,000 crore debt issue, helping achieve Vi's targeted ₹45,000 crore fundraising drive aimed at regaining financial health and bolstering competition with bigger and profitable rivals Reliance Jio and Bharti Airtel.

Earlier, Vi's FPO, India's biggest, was fully subscribed on the third day, with strong demand from global institutional investors such as GQG Partners, Capital Group and Fidelity Investments.

Shares of Vi closed 11.64% higher at ₹14.39 apiece, widely outperforming a flat benchmark index.

The telecom JV between UK's Vodafone Plc and India's Aditya Birla Group plans to spend more than 70% of the targeted fundraise in strengthening 4G operations and rolling out 5G networks.

Earlier, Vi's board had approved a preferential share issue to raise ₹2,075 crore from an Aditya Birla Group (ABG) entity, which set the stage for a wider funding programme critical for the company's revival. Vi will issue shares to ABG entity — Oriana Investments Pte Ltd — at ₹14.87 apiece.