Vodafone Idea’s follow-on public offer (FPO) saw a 43% subscription rate on Day 2, with investors acquiring 535.88 crore equity shares, according to exchange data.
As part of a larger plan to raise Rs 45,000 crore through debt and equity, the country’s third-largest telecom operator is offering 1,260 crore shares in the Rs 18,000-crore FPO, the largest of its kind in the country.
Qualified institutional investors led the subscriptions, acquiring 0.88 times their allotted share quota, while non-institutional investors secured 0.56 times their reserved portion. Retail investors subscribed to only 0.11 times their share allocation, purchasing 70.9 crore shares out of the reserved 630 crore.
The Vodafone Idea FPO, which began on April 22, has a price band of Rs 10-11 per share. On the first day, it was subscribed 26%.
The company raised Rs 5,400 crore from institutional investors through the anchor book at the upper price band on April 16, attracting investments from various institutions including Citigroup, Goldman Sachs, and Morgan Stanley.
Vodafone Idea plans to utilize Rs 12,750 crore of the net issue proceeds for network infrastructure expansion, including setting up new 4G and 5G sites and increasing the capacity of existing 4G sites. Another portion will be allocated to deferred payments for spectrum to the Department of Telecommunications and GST, with the remaining for general corporate purposes.
The stock closed at Rs 12.90 on April 19, down by 2.3%.
