On April 12, Vodafone Idea declared that it will begin its Follow-on Public Offer (FPO) for equity shares, with a maximum value of Rs 18,000 crore, the following week. On April 18 and ending on April 22, the FPO will be open.
The business stated in an exchange filing that the anchor bids would be accepted on April 16. Each equity share in the offering will have a floor price of Rs. 10 and a ceiling price of Rs. 11. The FPO was authorized by Vodafone Idea's board on February 27, after its approval of an equity raise of up to Rs 20,000 crore.
Through the issuance of preferred shares to Oriana Investments Pte Ltd., a promoter entity under the Aditya Birla Group, the business has raised Rs 2,075 crore. The issuance price of these shares was Rs 14.87 per equity share, which represents a 40% increase above the FPO floor price.
The telecom operator is rumored to be in negotiations with banks to arrange loan finance in addition to the Rs 20,000 crore equity fund raising, bringing the total fund raise to Rs 45,000 crore when debt and equity are combined.
According to a recent statement from brokerage CLSA, Vodafone Idea's shares might drop as low as Rs 5 following the company's 17 million customer loss during the previous 12 months.
In addition to its capital expenditures and 5G rollout, it stated that Vodafone Idea would run into financial difficulties in fiscal year 2026 when yearly payments for spectrum and AGR of up to $4 billion become due, unless the government converts the principal amount of the loan to equity at the conclusion of the moratorium. The brokerage kept the shares at a "sell" rating.
Over the past 12 months, Vodafone Idea's shares have quadrupled, but the price has since dropped 30% from its recent top. The stock is in the F&O ban for Friday's trading session, which prevents the creation of new positions in the stock.
Shares of Vodafone Idea were down 2% at Rs 12.65 on the National Stock Exchange at 9:35 a.m. Although the stock has increased in the last year, it has dropped by almost 25% so far this year. VI stock is under a F&O ban as of the April 12 trading session, which prevents the creation of new holdings in the stock.
