Voda Idea slides 5% on setting Rs 10/shr floor price for Rs 18,000 cr FPO

Shares of Vodafone Idea slipped 5 per cent to Rs 12.23 on the BSE in Friday’s intra-day trade amid heavy volumes. This came the company fixed the floor price at Rs 10 per share for its proposed follow on offer (FPO). The cap price of the offer is fixed at Rs 11 per share.

The company’s Rs 18,000 crore FPO is set to open for subscription on April 18 and will close on April 22. The company has set a minimum bid lot of 1,298 equity shares and in the multiples of 1,298 equity shares thereafter, the company said in exchange filing.

Vodafone Idea proposes to utilise Rs 12,500 crore towards purchase of equipment for expansion of its network infrastructure by setting up new 4G sites; expanding the capacity of existing 4G sites and setting up new 5G sites, the company said in exchange filing.

The company intends to use Rs 2,175 crore for the payment of certain deferred payments for spectrum to the DoT and the GST thereon.

Vodafone Idea believes that the company is well positioned to exploit the growth opportunities in India’s rapidly expanding mobile telecommunications industry.

At 11:15 am; the stock was trading 4.6 per cent lower at Rs 12.34, as compared to 0.46 per cent decline in the S&P BSE Sensex. A combined nearly 551 million equity shares are changing hands on the NSE and BSE. Share price of Vodafone Idea has corrected 34 per cent from its 52-week high level of Rs 18.42 touched on January 1, 2024.

Meanwhile, the stock price of Vodafone Idea could drop as much as 61 per cent to Rs 5, warns analysts at CLSA, if the beleaguered telecom company continues to see subscriber churn.

The company has already seen a loss of 17 million wireless subscribers over the past one year, of which 1 million were lost in the month of January 2024 alone. By comparison, Reliance Jio added about 4.2 million wireless subscribers in January 2024, while Bharti Airtel added 0.75 million subscribers, according to the latest data released by the Telecom Regulatory Authority of India (Trai). CLICK HERE FOR FULL STORY