Vodafone Idea's FPO will open today, know all the details including GMP here!
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Vodafone Idea is set to open its follow-on public offering (FPO) subscription today amid its ongoing financial challenges. This ₹18,000 crore IPO will run for five days and will close on April 22. The company has set a price band of ₹10 to ₹11 per share. This FPO holds great importance for the telecom industry and Vodafone Idea. To participate in this FPO, investors will have to purchase a minimum of 1,298 equity shares. Let's look at the details of Gray Market Premium (GMP).
How much can be invested?
Vodafone Idea plans to issue new equity shares worth about ₹ 18,000 crore in this FPO, making it the largest FPO ever in the Indian market. Earlier, Yes Bank had attempted to raise ₹15,000 crore through an FPO, followed by Adani Group in January last year when it attempted a ₹20,000 crore FPO. Investors can buy up to 14 lots equivalent to 18,172 shares. Retail investors can invest between ₹14,278 to ₹1,99,892. Shares will be allotted on April 23 and transferred to the demat account by April 24.
What's the situation in the gray market?
Out of the funds raised from this FPO, Vodafone Idea will allocate ₹12,750 crores for network infrastructure, 4G expansion, and launching 5G services. Apart from this, ₹2,175 crore will be given to Telecom and GST departments. Vodafone Idea suffered a loss of ₹23,564 crore from April to December in FY 2024. The company has a debt of ₹2.13 lakh crore by the end of 2023. According to BSE data, the government holds a 32.19% stake in the company. Currently, the company's stock is trading at ₹12.95 with a gray market premium of ₹1.50. Its listing price may be around Rs 12.5.
₹5,400 crore gain from meeting with anchor investors
Ahead of the FPO, Vodafone Idea has secured around ₹5,400 crore from anchor investors. This could be the third largest anchor book after One97 Communications and LIC. One97 Communications raised ₹8,235 crore, and LIC raised ₹5,627 crore from anchor investors. Akshay Mundra, CEO of the country's third-largest telecom company, stressed the need to increase call rates. After this FPO, the government's stake will reduce to 24 percent. He also thanked the anchor investors for showing confidence.