Vodafone Idea Rs 18,000-crore FPO Anchor Book Opens Today, Stock Falls 4%

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posted on 4 weeks ago — updated on 1 second ago

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Vodafone Idea Shares: The drop comes in reaction to the follow-on public offering (FPO) anchor book, which will open today.

Shares of Vodafone Idea dropped as much as 3.95 per cent to hit an intraday low of Rs 12.64 per share. The drop comes in reaction to the follow-on public offering (FPO) anchor book, which will open today.

Vodafone Idea shares have plunged 25.19 per cent year-to-date (YTD), but have surged 7 per cent in the past 6 months.

A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO). Vodafone Idea’s FPO will open for subscription on April 18 and close on April 22, 2024 with the price band of the issue fixed at Rs 10-11 per share. The company aims to raise Rs 18,000 crore from the FPO.

Foreign institutional investors such as Rajiv Jain-led GQG Partners, Fidelity, and several domestic institutional investors, including HDFC Mutual Fund, Motilal Oswal Mutual Fund and Quant Mutual Fund, are amongst a host of investors that are looking to participate in the mega Rs 18,000 crore follow-on public offering (FPO) of Vodafone Idea Ltd, people aware of the developments said.

The anchor book allocation for the FPO will be announced later on Tuesday. This portion, offered to institutional investors on a discretionary basis, opens a day before the launch of the share sale and acts as an indicator of institutional investor interest.

The debt-ridden teleco plans to use Rs 12,750 crore from the proceeds to purchase equipment for the expansion of its network infrastructure by setting up new 4G and 5G sites as well as expand their existing capacities. Additionally, around Rs 2,175.31 crore will be used to for deferred payments for spectrum to the Department of Telecom and GST, and the remaining funds will be used for corporate purposes.

As of December 31, 2023, Vodafone Idea’s total debt was Rs 2.15 lakh crore. The company reported a net loss of Rs 6,985.9 crore for the December quarter, down from Rs 7,990 crore in the year-ago period. Revenue for the same period was Rs 10,673.1 crore, up 0.49 percent from the previous fiscal. EBITDA grew to 40.8 per cent in the quarter compared to 39.4 percent in the previous fiscal.