Vodafone Idea Ltd’s Follow-on Public Offer (FPO) commenced on April 18 and garnered bids for 1 percent subscription within the first hour of opening. The total bids received amounted to 8.31 crore shares out of the 1,260 crore shares offered.
Various categories of investors, including retail investors, employees, high net-worth individuals (HNIs), and qualified institutional buyers (QIBs), have begun submitting bids for the offer. Retail investors and HNIs have each subscribed to 1 percent of their allotted quota. HNIs have bid for 2.86 crore shares against the reserved portion of 270 crore shares, while no bids have been received for the QIB portion yet.
The FPO subscription period will conclude on April 22. The price band for the issue is set at Rs 10-11 per share, with a minimum bid limit of 1,298 equity shares, and subsequent bids can be placed in multiples of 1,298 equity shares.
Vodafone Idea aims to raise Rs 18,000 crore from the FPO, which will be utilized primarily to purchase equipment for expanding its network infrastructure, including setting up new 4G and 5G sites and augmenting existing capacities. Additionally, funds will be allocated for deferred payments for spectrum to the Department of Telecom and GST, with the remainder earmarked for corporate purposes.
Prior to the FPO opening, the telecom company raised Rs 5,400 crore from institutional investors through an anchor book launched on April 16. This included investments from 74 institutional investors, such as GQG Partners, Morgan Stanley, Fidelity, FIAM Group, UBS Fund Management, The Master Trust Bank of Japan, and HDFC Mutual Fund.
The Rs 18,000-crore FPO is part of a broader plan to raise Rs 45,000 crore through a combination of debt and equity.
As of 10:44 am, Vodafone Idea shares were trading nearly 3 percent higher at Rs 13.30.
