In Short:
Vodafone Idea plans to raise up to Rs 18,000 crore through a sale of new shares in the biggest FPO in India. This will be done at a floor price of Rs 10 per share and the offer will be open from April 18 to April 22. The company aims to use the funds to roll out its 5G network within six to seven months and expand its 4G coverage.
Vodafone Idea to Raise Rs 18,000 Crore Through Public Offering
Exciting news from Vodafone Idea as they announced their plans to raise up to Rs 18,000 crore through a sale of new shares, making it the country’s biggest follow-on public offering (FPO).
Big Plans for Expansion
In February, the debt-laden company revealed their intention to raise up to Rs 20,000 crore through equity, with a financial support of Rs 2,000 crore from a top shareholder entity. And now, they are all set to kick off the public offering, with bids opening from April 18 to April 22 at a floor price of Rs 10 per share.
Focus on 5G Network
Vodafone Idea, the third-largest telecom carrier in the country, aims to utilize the funds raised to roll out their 5G network service within six to seven months. They also plan to expand their 4G coverage to better compete with their larger rivals, Bharti Airtel and Reliance Jio, who have already launched their 5G services in most parts of the country.
Company Background
Formed in August 2018 through a merger between the Indian arm of UK’s Vodafone and Aditya Birla Group’s Idea Cellular, Vodafone Idea has been facing losses every quarter since its inception. The company hopes that this fundraising initiative will help them regain their competitive edge in the market.
Stay tuned for more updates on Vodafone Idea as they embark on this exciting journey of expansion and growth!
