Vodafone Idea FPO, Vodafone Idea share price: Vodafone Idea, which seems to have found a new lease of life with its Rs 18,000 crore follow-on public offering (FPO), India’s largest so far, may enter the MSCI index in August 2024. According to reports, if the price remains favorable, the stock has a chance of being added to the index. The favorable price of the stock is around Rs 12. If included, it could generate inflows in the range of $275-280 million.
The telecom company was planning to raise Rs 20,000 crore through equity, and this FPO was part of it. It also plans to raise Rs 25,000 crore through debt. The capital will be used for 4G coverage, 5G deployment and capacity expansion. The management aims to start 5G services in some locations after six to nine months of issuance and provide 5G services to subscribers (40 percent of revenue) in the next 24 to 30 months.
The FPO, which was held between April 18 and 22, received a total bid, including anchor investors, of Rs 94,000 crore, with over 11.6 lakh applications received.
The board of directors of telecom operator Vodafone Idea (VIL) has priced the FPO offer at Rs 11 per share, according to a regulatory filing. The lead investor’s offer price of Rs 11 per share was also approved by the board. “…The following resolutions have also been passed…We have determined and approved the offer price of Rs 11 per equity share…We have approved the lead investor offer price of Rs 11 per equity share,” informed VIL.
The fundraising will give VIL ammunition to improve its competitive positioning in the Indian telecom market, where it is well behind Reliance Jio and Bharti Airtel.
“Following our letter of April 17, 2024 informing you of the meeting of the board of directors of the company which will be held on April 22, 2024 under the offer, we would like to inform you that the Board, during its « L « The general meeting held today, i.e. April 22, 2024, approved and adopted the prospectus dated April 22, 2024, in connection with the offer, » VIL said.
The prospectus has been filed with the Gujarat Registrar of Companies, Ahmedabad, and submitted to the Securities and Exchange Board of India, BSE Limited and the National Stock Exchange of India Limited, it added.
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