VIL’s mega FPO subscribed 6.36x

In pursuant to the new fund raising plan approved by Vodafone Idea’s (VIL) Board in February 2024, the Company launched a mega follow-on public offer (FPO) of Rs 18,000 cr.

The FPO was offered in the price band of Rs 10 to Rs 11 and was open from April 18 to April 22.

The Company had already raised Rs 5,400 crore from 74 anchor investors on April 16. The investors included GQG Partners, The Master Trust Bank of Japan, UBS, Morgan Stanley Investment Management, Citigroup Global Markets, Australian Super, Fidelity, Quant, and Motilal Oswal.

The issue has been overall subscribed a total of 6.36 times. The quota for qualified institutional bidders (QIBs) was booked 17.56 times. The quota for non-institutional investors was subscribed 4.13 times. The portions reserved for retail investors saw bidding for only 92 per cent during the three-day bidding process.

Utilisation of funds

  • Rs 12,750 crore to purchase equipment for expanding its network infrastructure by setting up new 4G sites, expanding the capacity of existing 4G sites, and setting up new 5G sites, as per the RHP.
    • Out of Rs 12,750 cr, the telco will spend Rs 5,720 crore for network expansion on setting up its 5G network.
  • Rs 2,175 cr for payment of certain deferred payments for spectrum to the DoT and the GST thereon
  • Balance not mentioned

Other recent fund raise

Other than the above FPO, VIL has also announced a preferential issue totalling Rs 2,075 cr to be approved on May 8, 2024.

  • Issue price has been fixed at Rs 14.87/ share
  • Preferential issue will be fully to the Aditya Birla group. Nothing is for/ by the Vodfaone group.
  • Purpose of the fund raise will be payment of license fee and other payments totalling Rs 1,556.25 cr to Department of Telecommunications (“DoT”) and Rs 518.75 cr for General Corporate Purposes.
    • This purpose is similar to the one mentioned in the above FPO.
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