VODAFONE IDEA’S ₹18,000 CRORE FPO TO OPEN ON 18 APR FOR 5 DAYS

NEW DELHI: Vodafone Idea will launch a follow-on public offer (FPO) worth ₹18,000 crore next week at a price band of ₹10-11 apiece. In a filing on the BSE on Friday, the Aditya Birla Group company said the five-day offer will open on 18 April, while anchor investors will gain access on 16 April.

Typically, 50% of FPO shares are reserved for qualified institutional buyers, while 33-35% is reserved for retail investors. Retail investors have to bid for a minimum lot size of 1,298 shares, with bids required to be in multiples thereof. According to industry insiders, institutional investors’ portion has already been fully subscribed.

However, neither did Vodafone Idea, India’s third largest telecom services provider, make any official statement, nor did it comment on Mint’s queries till press time.

According to a Reuters report, investment firm GQG Partners and State Bank of India Mutual Fund are considering investments of up to $800 million in the FPO, including a $500-million commitment by the Us-based fund.

According to the exchange filing, the telco will start road shows and interact with investors and analysts across India from 15 April until the bid closing date.

“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,” the company said.

At the upper limit of the price band, Vi is offering the shares at a discount of around 26% to the recently approved preferential issue price of ₹14.87 apiece for the promoter entity, Oriana Investments Pte. Ltd. It also represents a discount of about 15% over Thursday’s closing price of ₹12.95, it added.