Vodafone Idea announced today its plans to initiate a Follow-on Public Offer (FPO) of equity shares valued at up to Rs 18,000 crore next week.The FPO commences on April 18 and concludes on April 22.
The company stated in an exchange filing that the anchor bids would be approved on April 16. The floor price for the issue has been set at Rs 10 per equity share, with the cap price fixed at Rs 11.
Following the approval by Vodafone Idea’s board on February 27 to raise up to Rs 20,000 crore through equity, the FPO has now been announced.
Preferential shares were recently issued by the company to Oriana Investments Pte Ltd., a promoter entity within the Aditya Birla Group, to raise a total of Rs 2,075 crore. At the issue price of Rs 14.87 per equity share, these shares were issued, representing a 40% increase over the FPO floor price.
The telecom operator is rumored to be in talks with banks to arrange loan finance in addition to the Rs 20,000 crore equity fundraise, bringing the total fundraise to Rs 45,000 crore when debt and equity are combined.
In a recent statement, brokerage firm CLSA suggested that Vodafone Idea’s shares may plummet to as little as Rs 5 following a loss of up to 17 million subscribers in the past year.
It stated that, if the government does not convert loan principal to equity after the moratorium, Vodafone Idea may run into financial difficulties in fiscal year 2026 when annual spectrum and AGR payments of up to $4 billion become due. This is in addition to its capex and 5G rollout. The brokerage kept the shares at a “sell” rating.
Vodafone Idea’s shares have doubled in value over the past year, though they have undergone a 30% correction from their recent high. As of Friday’s trading session, the stock is under the F&O ban, indicating that no new positions can be initiated in it.
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At 9:35 am, Vodafone Idea’s shares were being traded at Rs 12.65 on the National Stock Exchange, marking a 2 percent decrease. While the stock has doubled in value over the past year, it has declined by approximately 25 percent year-to-date. Notably, for the April 12 trading session, VI stock is under the F&O ban, prohibiting the creation of new positions in the stock.
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