According to Vodafone Idea Limited, on Thursday, April 18, 2024, it will begin accepting bids and offers for its Further Public Offering (FPO) of equity shares.
According to Vodafone Idea Ltd, the company plans to use the net proceeds from a new equity share offering to fund the following: (i) the purchase of equipment for the expansion of its network infrastructure, amounting to Rs. 1,27,500 million [Rs. 12,750 crore]; this includes (a) setting up new 4G sites; (b) increasing the capacity of existing 4G sites and new 4G sites; and (c) setting up new 5G sites; (ii) the payment of certain deferred payments for spectrum to the DoT and the GST thereon amounting to Rs. 21,753.18 million [Rs. 2,175 crore], and (v) the remaining amount for general corporate purposes.
The major features of the Vodafone Idea FPO are as follows:
1. Up to Rs 18,000 crore worth of newly issued equity shares make up the total offer size.
2. The offer's price range is set at between Rs. 10 and Rs. 11 per equity share.
3. After the initial 1,298 Equity Shares, bids may be placed for multiples of 1,298 Equity Shares.
4. Tuesday, April 16, 2024, is the date of the anchor investor bid.
5. The Bid/Offer subscription period will begin on Thursday, April 18, 2024, and end on Monday, April 22, 2024.
6. It is suggested that the equity shares made available by this Red Herring prospectus, dated April 11, 2024, be listed on stock exchanges.
7. NSE is the Designated Stock Exchange for the purposes of the Offer.
8. Qualified Institutional Buyers shall receive a proportional share, not to exceed, 50% of the Offer.
9. The Company may, at its option, give Anchor Investors up to 60% of the QIB Portion after consulting with the Book Running Lead Managers.
10. In addition, only mutual funds will be eligible for a proportionate allocation of 5% of the Net QIB Portion.
11. If valid bids are received from mutual funds at or above the offer price, the remaining amount of the QIB amount will be distributed proportionately to all QIB bidders, except Anchor Investors.
12. Non-institutional bidders must be eligible to receive at least 15% of the offer.
13. The book running lead managers are Axis Capital Limited, Jefferies India Private Limited, and SBI Capital Markets Limited.
