Vodafone Idea FPO: India's largest follow-on public offering (FPO) of Rs 18,000 crore by debt-laden telecom operator Vodafone Idea is all set to open for subscription today, April 18. The issue will remain open till April 22, 2024.
Last week, Vodafone Idea has announced an FPO worth Rs 18,000 crore, in addition to the recent Rs 2,000 crore preferential equity issuance to promoters. The firm carries a debt burden of Rs 2.1 lakh crore to the government, with a major portion of it under moratorium until the first half of the financial year 2025-2026 (1HFY26). Following the equity fundraising, the government's shareholding will decrease from 32 per cent to 24 per cent.
FPO is a process through which listed companies raise funds by issuing new shares to the existing shareholders. It is different from an IPO where the company issue its shares to its public for the first time.
Axis Capital, Jefferies India and SBI Capital Markets are the book running lead managers of the Vodafone Idea FPO, while Link Intime India Private Ltd is the registrar for the issue.
Retail investors need to apply for a minimum lot size of 1,298 shares, requiring a minimum investment of Rs 14,278. For sNII, the minimum lot size investment is 15 lots (19,470 shares), totaling Rs 214,170. As for bNII, the minimum lot size investment is 71 lots (92,158 shares), totaling Rs 1,013,738.
Considering the upper band (Rs 11) of the issue, Vodafone Idea's shares are likely to list at Rs 12.7 per share, a discount of 1.55 per cent on Tuesday's closing price of Rs 12.90.
Additionally, the company will allocate Rs 2,175 crore for the payment of certain deferred payments for spectrum to the Department of Telecommunications (DoT) and the Goods and Services Tax (GST). The remaining amount will be allocated for general corporate purposes.
Citing sources, the report said that over 70 per cent of the anchor investors are foreign institutions. It said that Rajiv Jain's GQG Partners, UBS, Morgan Stanley Investment Management, AustralianSuper and Fidelity took part in the anchor book. GQG Partners reportedly applied for over $400 million in Vi's anchor book.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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2024-04-18T03:10:01Z dg43tfdfdgfd