Vi FPO to open on April 18: Check lot size, price band, other details

Telecom major Vodafone Idea, has announced a follow-on public offer (FPO), aimed at raising up to Rs 18,000 crore. 

The Vodafone Idea FPO, which comprises a fresh issue totalling 16.36 billion shares, is intended to boost the company's financial capabilities for deploying 5G technology and addressing pending vendor dues.

“The FPO provides an opportunity for investors to increase their stake in Vodafone Idea, one of the leading telecom players in India, allowing them to capitalise on the company's potential for growth and market,” said Atul Parakh, CEO of Bigul.

The Vi FPO is scheduled to open for subscription on April 18, 2024, and close on April 22. The allotment for the Vi FPO is expected to be finalised on Tuesday, April 23, 2024. 

Meanwhile, the company will list the FPO-issued shares on both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on April 25, 2024. 

The price band for the Vi FPO is fixed at Rs 10 to Rs 11 per share, offering a 16.3 per cent discount from Friday’s closing price of Rs 13.15 per share.

As per the company filings, the minimum lot size for retail investors is 1,298 shares, requiring a minimum investment of Rs 14,278 at the upper band.

For small non-institutional investors (sNII), the minimum lot size investment is set at 15 lots, equivalent to 19,470 shares, totalling Rs 0.2 million. For big non-institutional investors (bNII), the minimum lot size investment is 71 lots, corresponding to 92,158 shares, totalling Rs 1.13 million

Additionally, Axis Capital Limited, Jefferies India Private Limited, and SBI Capital Markets Limited are the appointed book running lead managers for the Vi FPO, with Link Intime India Private Ltd serVing as the registrar for the issue.

Despite facing challenges such as subscriber losses and debt burdens, Vodafone Idea's FPO underscores its strategic commitment to rejuvenating its operations and strengthening its foothold in the dynamic telecom industry of India. “The FPO will help Vodafone Idea raise much-needed capital to strengthen its balance sheet, invest in network infrastructure, and compete more effectively against rivals. It can also improve the company's financial flexibility and access to capital markets,” Parakh added.

He further said that the market is likely to react positively to the FPO, Viewing it as a sign of Vodafone Idea's commitment to its turnaround strategy. However, the success of the offering will depend on the company's ability to execute its plans and deliver on its growth targets.

As of 12:02 pm, shares of the company were trading 1.54 per cent higher at Rs 13.16 per share.