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Vodafone Idea FPO set to launch next week at attractive discount to pref issue

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In Short:

Vodafone Idea is planning to raise Rs20,000 crore through a follow-on public offer at a discount to a recent share price. The offer is likely to open next week and the anchor investor portion has already been fully subscribed. The company aims to raise a total of Rs45,000 crore through a mix of equity and debt to strengthen its network and compete with bigger rivals like Reliance Jio and Bharti Airtel.

Vodafone Idea to Launch Rs 20,000 Crore FPO Next Week

Vodafone Idea (Vi) is set to open a Rs 20,000 crore follow-on public offer next week at a significant discount to the previously set price. According to sources, the filing of relevant documents with the markets regulator is expected to be done shortly.

FPO Details

The anchor investor portion of the FPO has already been fully subscribed, with 50% of the book reserved for qualified institutional buyers (QIB), 35% for retail investors, and the remaining for high-net-worth individuals (HNIs).

Further Funding Plans

Following the FPO closure, debt funding of around Rs 25,000 crore is expected. This move comes after Vi’s board approved a preferential share issue to raise Rs 2,075 crore from an Aditya Birla Group (ABG) entity.

Future Strategy

Vi’s fundraising plan aims to secure a total of Rs 45,000 crore through a mix of equity and debt to repay vendors, bolster its network, and launch 5G services. The company is looking to compete with major players like Reliance Jio and Bharti Airtel in the telecom market.

Financial Outlook

Vi’s net debt stands at Rs 2.14 lakh crore, with cash and cash equivalents of Rs 318.9 crore. The company also faces debt payments of nearly Rs 70,000 crore in adjusted gross revenue (AGR) dues.

The FPO launch is a crucial step in Vi’s efforts to strengthen its position in the telecom industry and cater to the increasing demand for 5G services.

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