Vodafone Idea’s FPO will open on April 18: SBI Mutual Fund and GQG Partners can invest up to ₹ 6500 crore

Vodafone Idea’s FPO will open on April 18: SBI Mutual Fund and GQG Partners can invest up to ₹ 6500 crore

Telecom company Vodafone Idea (VI), which is facing financial crisis, has announced to launch a follow-on public offer i.e. FPO of Rs 18,000 crore. This FPO will be open from 18th April to 22nd April. Now according to a report by Reuters, investment firm GQG Partners and SBI Mutual Fund are considering investing a total of up to $ 800 million (about Rs 6,500 crore) in this FPO. America’s GQG is a company run by Indian-born executive Rajeev Jain. GQG plans to invest about $500 million in the FPO of Vodafone Idea. Whereas SBI Mutual Fund is considering investing 20-30 crore dollars in this FPO. Both GQG and SBI Mutual Fund are considering investments under the institutional quota. However, the final decision regarding investment has not been taken yet. Vodafone Idea plans to rollout 5G Vodafone Idea said in a regulatory filing that the company plans to use this fund to rollout 5G, improve 4G service, and pay taxes and dues. Along with this, this fundraising will also enable the company to improve its competitive positioning and provide better customer experience. The company has fixed the price band for FPO between ₹ 10 to ₹ 11. Anchor investors will be able to bid in Vodafone Idea’s FPO on April 16. The company has fixed the price band for its FPO between ₹10 to ₹11. Investors can bid for a minimum of one lot i.e. 1298 shares. In such a situation, if you apply for 1 lot according to the upper price band of FPO of ₹ 11, then you will have to invest ₹ 14,278. VI will interact with investors and analysts The company had said in its exchange filing that on April 11, 2024, the board has approved the acceptance and filing of the Red Herring Prospectus (RHP) with the Registrar of Companies, Gujarat. Vodafone Idea will hold a road show from April 15 till the end of the offer, in which it will interact with investors as well as analysts. Shareholders had approved raising funds. Recently, Vodafone Idea shareholders had approved raising Rs 18 to 20 thousand crores through equity and equity-linked securities. This is the biggest FPO till date. This is the biggest FPO till date. Currently, the largest FPO in the Indian market is that of Yes Bank, which was worth Rs 15 thousand crores. Whereas Adani Enterprises had brought FPO worth Rs 20 thousand crore in January last year. However, the company later withdrew it. If it had not done so, Adani Enterprises would have been the largest company to bring FPO. What is FPO? Follow on public offer (FPO) is a process by which a company that is already listed on the stock exchange issues new shares to investors or existing shareholders, usually promoters. If understood in simple language, companies listed in the stock market raise funds by issuing new shares in the secondary market. Vodafone Idea has a debt of Rs 2.10 lakh crore. Vodafone Idea is facing financial problems, which has a debt of Rs 2.10 lakh crore. VI wants to improve its service and basic infrastructure to compete with its competitors (Jio and Bharti Airtel). The company is currently far behind big competitors like Reliance Jio and Bharti Airtel. The company’s net loss declined to ₹ 6,986 crore in the December quarter. Vodafone Idea’s combined net loss declined to ₹ 6,986 crore in the quarter ended December, which was Rs 7,990 crore last year and Rs 8,738 crore in the previous quarter. Along with this, the company has also shown some positive signs. VI Vodafone Idea is India’s third largest telecom operator. Its 4G customer base has increased from 121.6 million to 125.6 million in the last one year. The company has maintained growth in its 4G customer base and average revenue per user (ARPU) for ten consecutive quarters. VI is India’s third largest telecom operator after Reliance Jio and Bharti Airtel.

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