Vodafone Idea FPO: 5 things to know about India's largest Rs 18,000 crore FPO
Vi announced FPO worth Rs 18,000 crore, in addition to the recent Rs 2,000 crore preferential equity issuance to promoters.
The firm owes Rs 2.1 lakh crore debt to the government, with a large part of it under moratorium until 1HFY26. Post the equity fund-raise, govt shareholding will fall to 24% from 32%.
Here are 5 key points to consider about the Voda Idea FPO before subscribing to the issue:
1. Issue Date
The Vi FPO is scheduled to open for subscription on April 18, 2024, and close on April 22. The allotment for the FPO is expected to be finalised on Tuesday, April 23, 2024.
2. Price Band
The price band for the FPO is fixed at Rs 10 to Rs 11 per share, offering a 15% discount from Friday’s closing price of Rs 12.95 per share.
3. Lot Size
Investors have to apply in a minimum bid lot of 1,298 shares and multiples of 1,298 shares thereafter.
Bids for anchor investors will be open on April 16. «A meeting of the Capital Raising Committee is scheduled to be held on 16 April 2024 for the purposes of allocation of Equity Shares to the successful Anchor Investors pursuant to the Offer and for determination of the Anchor Investor Allocation Price,» Vodafone Idea said in a filing.
4. Purpose of the Offer
The net proceeds will be utilised to purchase equipment for expanding its network infrastructure, including setting up new 4G sites, expanding the capacity of existing 4G sites, and establishing new 5G sites. An amount of Rs 12,750 crore will be allocated for this purpose.
Additionally, the company will allocate
