Vodafone Idea (Vi) is preparing to launch a follow-on public offer (FPO) to raise Rs 18,000-20,000 crore by the middle of next week, reported Moneycontrol, citing sources.
The debt-laden telecom company has enlisted Jefferies, SBI Caps, and Axis Capital as lead managers for the FPO, which is set to be one of the largest offerings of its kind in India. However, sources said that none of the banks are underwriting the issue.
Yes Bank's Rs 15,000 crore FPO stands as the largest share sale in the Indian market to date.
Adani Enterprises' Rs 20,000 crore FPO in January 2023 would have topped the charts, but the Gautam Adani flagship company decided to call off the offer following allegations of several governance lapses at the Adani Group in a report by Hindenburg Research.
Vodafone Idea has reportedly secured commitments from anchor investors, including both foreign and domestic institutional investors, signaling initial support for the FPO, sources told Moneycontrol.
Sources have also revealed that the fundraise has the backing of the Government of India, the largest shareholder in the company at 33 per cent. "Some investors are said to have approached the government before committing to invest in the FPO," they added.
The move comes amidst fierce competition and financial hurdles within the telecom sector.
Vodafone Idea has been contending with a substantial debt load and operational deficits, compounded by regulatory challenges, leading to a decline in its subscriber base and market share.
On April 5, the board of Vodafone Idea sanctioned the allocation of shares valued at Rs 2,075 crore to Oriana Investments Pte Ltd, a subsidiary of the Aditya Birla Group and a member of the promoter consortium, through a preferential allotment.
The issue price stands at Rs 14.87, surpassing the closing price of Rs 13.36 on the BSE last Friday.
The proceeds from the offering are expected to furnish much-needed liquidity and bolster the company's financial position.
According to the Telecom Regulatory Authority of India (TRAI) data, Vodafone Idea's subscriber base declined by 1 million to 220.5 million in February. The company has been losing two to six million subscribers every quarter over the past few quarters as subscribers are switching to other service providers. Vodafone Idea's total user base was 215.2 million on December 31.
Vodafone Idea (Vi) is preparing to launch a follow-on public offer (FPO) to raise Rs 18,000-20,000 crore by the middle of next week, reported Moneycontrol, citing sources.
The debt-laden telecom company has enlisted Jefferies, SBI Caps, and Axis Capital as lead managers for the FPO, which is set to be one of the largest offerings of its kind in India. However, sources said that none of the banks are underwriting the issue.
Yes Bank's Rs 15,000 crore FPO stands as the largest share sale in the Indian market to date.
Adani Enterprises' Rs 20,000 crore FPO in January 2023 would have topped the charts, but the Gautam Adani flagship company decided to call off the offer following allegations of several governance lapses at the Adani Group in a report by Hindenburg Research.
Vodafone Idea has reportedly secured commitments from anchor investors, including both foreign and domestic institutional investors, signaling initial support for the FPO, sources told Moneycontrol.
Sources have also revealed that the fundraise has the backing of the Government of India, the largest shareholder in the company at 33 per cent. "Some investors are said to have approached the government before committing to invest in the FPO," they added.
The move comes amidst fierce competition and financial hurdles within the telecom sector.
Vodafone Idea has been contending with a substantial debt load and operational deficits, compounded by regulatory challenges, leading to a decline in its subscriber base and market share.
On April 5, the board of Vodafone Idea sanctioned the allocation of shares valued at Rs 2,075 crore to Oriana Investments Pte Ltd, a subsidiary of the Aditya Birla Group and a member of the promoter consortium, through a preferential allotment.
The issue price stands at Rs 14.87, surpassing the closing price of Rs 13.36 on the BSE last Friday.
The proceeds from the offering are expected to furnish much-needed liquidity and bolster the company's financial position.
According to the Telecom Regulatory Authority of India (TRAI) data, Vodafone Idea's subscriber base declined by 1 million to 220.5 million in February. The company has been losing two to six million subscribers every quarter over the past few quarters as subscribers are switching to other service providers.
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