Vodafone Idea FPO Subscribed 26% On Day 1

Vodafone Idea Ltd. launched its three-day follow-on public offering on Thursday to raise up to Rs 18,000 crore which saw bidding of a meagre 26% of the total issue on offer on its first day. The cash-strapped telecom company will issue over 1,260 crore shares at a price band of Rs 10-11 per share for its public offer.

The face value of the equity shares is Rs 10 each, and the issue has a lot size of 1,298 shares.

Vodafone Idea has mopped up close to Rs 5,400 crore from anchor investors. Marquee investors include GQG Partners, Fidelity Investments, Australian Super, UBS Fund Management and Redwheel Fund. The telecom major allotted 490.9 crore shares at Rs 11 apiece to 74 anchor investors.

Axis Capital Ltd., Jefferies India Pvt., SBI Capital Markets Ltd. are the book-running managers for the FPO.

After the equity fundraise, Vodafone Idea is likely to witness an overall dilution of 26%, according to calculations by NDTV Profit.

The company's board also approved raising Rs 2,075 crore from promoter Aditya Birla group and increasing its authorised share capital to Rs 1 lakh crore.

Issue Details

• Issue opens: April 18.

• Issue closes: April 22. 

• Issue price: Rs 10-11 per share.

• Minimum lot size: 1,298 shares.

• Face value: Rs 10 apiece.

• Total issue size: Rs 18,000 crore.

• Issue size: 1,260 crore shares.

Use Of Proceeds

The company plans to use Rs 12,750 crore from the FPO proceeds to expand its 4G network and towards launch of 5G services and further capex.

About Rs 2,175 crore will be used for the payment of certain deferred payments for spectrum to the department of telecommunication and other dues.

Subscription Status: Day 1

The FPO has been subscribed 0.26 times or 26% as of 5:00 p.m. on Thursday.

• Institutional investors: 0.61 times or 61%.

• Non-institutional investors: 0.28 times or 28%.

• Retail investors: 0.06 times or 6%.