Vodafone-Idea preparing to bring the largest FPO: May launch a follow-on public offer of ₹ 20 thousand crore next week VI

Vodafone-Idea preparing to bring the largest FPO: May launch a follow-on public offer of ₹ 20 thousand crore next week VI

Telecom company Vodafone-Idea (VI), which is facing financial crisis, is planning to launch a follow-on public offer (FPO) in the middle of next week. According to the report of Moneycontrol, this FPO of the company can be worth Rs 18 thousand-20 thousand crores. Jefferies, SBI Caps and Axis Capital as lead managers for the FPO Financially distressed VI has appointed Jefferies, SBI Caps and Axis Capital as lead managers for this FPO. According to sources, no bank is doing underwriting work for this issue. The money raised will be used to increase liquidity. Domestic and foreign anchor investors will also invest in this FPO of VI. This means that FPO can get good support in the beginning. The money raised through this FPO will be used to increase liquidity. VI’s FPO could be the largest follow-on public offering ever VI’s FPO could be the largest follow-on public offering ever. Currently, the largest FPO in the Indian market is that of Yes Bank, which was worth Rs 15 thousand crores. Whereas Adani Group’s flagship company Adani Enterprises had brought FPO worth Rs 20 thousand crore in January 2023 last year. However, the company later withdrew it. If this had not been the case then this FPO would have been on the top in the list of largest FPOs. In the last one year, VI shares gave 112% return to investors. Vodafone-Idea shares closed at Rs 12.90 on Tuesday. The market cap of the company is Rs 64.80 thousand crore. In the last one year, the company’s shares have given a return of 112% to its investors. The company will raise ₹ 2,075 crore from Aditya Birla Group. Earlier on April 5, the board of Vodafone-Idea had approved the plan to raise ₹ 2,075 crore. Vodafone-Idea will raise this fund from the company’s promoter Aditya Birla Group. Vodafone-Idea had said in a regulatory filing that its board has approved the issuance of 139.5 crore equity shares to Oriana Investments Pte Ltd at an issue price of Rs 14.87 per share. The issue price also includes a premium of Rs 4.87 per share. The face value of the share is Rs 10. Oriana Investments is a unit of Aditya Birla Group. The value of this preferential issue has been fixed at Rs 2,075 crore, subject to shareholder approval in the general meeting. The company had said that the date for setting the floor price is April 8, 2024. The board also approved increasing the company’s authorized share capital. VI had also said that its board has approved increasing the company’s authorized share capital to Rs 1 lakh crore from the current Rs 75,000 crore. Which includes equity share capital of Rs 70,000 crore and preference share capital of Rs 5,000 crore. The company had said that under the proposed change, the increased authorized share capital will be divided into equity share capital of Rs 95,000 crore and preference share capital of Rs 5,000 crore. VI also said that it will seek shareholder approval regarding these proposals in the general meeting to be held on May 8.

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