Vodafone Idea Approves Rs 10-11 Price Band For Rs 18,000-Crore FPO
'A minimum bid lot of 1,298 equity shares and in the multiples of 1,298 equity shares thereafter,' according to an exchange filing.
Vodafone Idea Ltd. has approved the follow-on public offer's floor price at Rs 10 per equity share with the cap placed at Rs 11 per equity share, according to an exchange filing. The development came close on the heels of the company passing a resolution for approving, adopting and filing of the red herring prospectus dated April 11 with the Registrar of Companies, Gujarat at Ahmedabad, in connection with the further public offering of equity shares, aggregating up to Rs 18,000 crore.
"A minimum bid lot of 1,298 equity shares and in the multiples of 1,298 equity shares thereafter," the filing dated April 11 read.
The Capital Raising Committee is scheduled to be held on April 16, for the purpose of allocation of equity shares to the successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price, it added.
After the Rs 20,000-crore equity fundraise, Vodafone Idea is likely to witness an overall dilution of 26%, according to calculations by NDTV Profit.
However, Aditya Birla Group's stake is likely to remain the same at nearly 10% as it will infuse Rs 2,075 crore at Rs 14.87 apiece. Total promoter holding is expected to come down nearly 10-38% following dilution in Vodafone Plc.'s stake.
Government stake, which is the largest in the company, is likely to witness equity dilution of 33-24%.
The telecom company had earlier approved a fundraise of Rs 45,000 crore via equity and debt. Of the total amount approved, Rs 20,000 crore will be via equity or equity-linked instruments.