Vodafone Idea FPO to open for subscription on April 18
One of the objectives of the FPO is to expand network coverage by spending ₹7,030 crore on 4G and ₹5,720 crore on 5G
BILKULONLINE
Ahmedabad, April 17: A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO). Vodafone Idea’s FPO will open for subscription on April 18 and close on April 22, 2024 with the price band of the issue fixed at Rs 10-11 per share. The company aims to raise Rs 18,000 crore from the FPO.
The government owns a 32.19% stake in Vodafone Idea based on the March quarter shareholding pattern on the BSE. Vodafone Idea Ltd.’s upcoming ₹18,000 crore Follow on Public Offer (FPO) has received support from the government, which is the largest shareholder in the telecom operator.
Vodafone Idea (Vi) plans to spend Rs 5,720 crore to launch 5G wireless network in the next 24 months, Chief Executive Officer (CEO) Akshaya Moondra said in Ahmedabad on Tuesday. One of the objectives of the FPO is to expand network coverage by spending ₹7,030 crore on 4G and ₹5,720 crore on 5G.
If successful, this will be the biggest FPO in India, surpassing YES Bank’s Rs 15,000 crore share sale in July 2020. Notably, Adani Enterprises’ Rs 20,000 crore FPO was fully subscribed but later cancelled in February 2023 amid the controversy stirred by a report from US-based short seller Hindenburg Research.
The debt-ridden teleco plans to use Rs 12,750 crore from the proceeds to purchase equipment for the expansion of its network infrastructure by setting up new 4G and 5G sites as well as expand their existing capacities. Additionally, around Rs 2,175.31 crore will be used to for deferred payments for spectrum to the Department of Telecom and GST, and the remaining funds will be used for corporate purposes.
Vodafone Idea (Vi) lost 4.6 million subscribers in the third quarter of the financial year 2024 (Q3FY24) going from 219.8 million subscribers in the last quarter to 215.2 million this quarter. However, it is an all-India integrated GSM operator offering 2G, 3G, 4G, LTE Advanced, VoLTE, and VoWiFi service. As of 31 September 2023, Vi has a subscriber base of 219.8 million, making it third largest mobile telecommunications network in India and 11th largest mobile telecommunications network in the world.
It was when Jio jumped into the market then Vodafone India had to merge with Idea Cellular as the market of both companies was declining very fast. An integrated brand identity – Vi has been announced by Vodafone and Idea which is pronounced ‘we’. The new brand is having the tagline ‘Together for Tomorrow’.
Top team of the Vodafone IDea Limited comprising of its CEO, Akshaya Moondra, CFO, Murthy GVAS, Head Investor relations, Pooja Kapur and investment banker Parin Savla were present in Ahmedabad to interact with the media while announcing details about the forthcoming FPO of the company.
