Beleaguered telecom company Vodafone Idea FPO has finally been announced and it has been pegged at ₹18,000 crore. This Vodafone Idea share sale is the biggest follow-on public offer ever. Considering its massive debt, the company needs to raise funds to stay alive. Vodafone Idea aka Vi is in the fight of its life as it battles fierce rivals Reliance Jio and Bharti Airtel for the vast Indian market.
So, what is the Vodafone Idea fund plan?
1. Target
* Vodafone Idea to raise up to ₹18,000 crore.
2. Share Sale Details
* Shares price band – ₹10-11 apiece.
* Important Dates – April 18 (offer opens) and April 22 (Offer closes).
3. Vi FPO Significance
* Till now Yes Bank’s ₹15,000 crore sale in 2020 was the largest FPO ever.
* Funding to improve Vodafone Idea’s position vis a vis rivals
4. Funds utilisation
* Boost 4G services and clear dues.
* 5G rollout.
5. Current Debt
* Debt of ₹2.1 lakh crore and quarterly losses.
6. Price Band and Bidding
* Floor price set at ₹10, cap at ₹11 per equity share.
* Minimum bid lot: 1,298 equity shares.
7. Preferential Issue
* Raised ₹2,075 crore from Aditya Birla Group earlier in April.
* Shareholders approved raising up to ₹20,000 crore in an EGM on April 2.
8. Future Fundraising
* Aim to raise ₹45,000 crore through equity and debt.
* Focus on ramping up network capex and narrowing gap with peers.
9. Price Hike
* Potential tariff hikes and AGR relief may boost cash flow.
10: Vodafone Idea share price
* Vodafone Idea shares declined nearly 6% on the Bombay Stock Exchange (after FPO announcement). It later rebounded and recovered the lost ground. It closed at ₹12.96, showing a marginal increase of 0.23%.
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