On the BSE, Vodafone Idea shares increased 4.33 percent to a high of Rs 13.48. Vodafone Idea's price estimate of Rs 14 has been raised by IIFL Securities since it suggested purchasing an FPO subscription.
Vodafone Idea FPO: Bids may be placed for a minimum of 1,298 shares and subsequently in multiples of 1,298 shares. The FPO price band has been set in the Rs 10–11 range.
In Thursday's trading, Vodafone Idea Ltd.'s shares increased 4% as the telecom operator's Rs 18,000 crore follow-on public offer (FPO) got underway. In the Rs 10-11 price range, the FPO price band has been set, and bids can be placed for a minimum of 1,298 shares and subsequently in multiples of 1,298 shares.
Vodafone Idea shares rose 4.33 percent to a high of Rs 13.48 on the BSE in the wake of the event. Vodafone Idea's price estimate of Rs 14 has been raised by IIFL Securities since it suggested purchasing an FPO subscription. All three carriers stand to gain from the two sets of tariff increases that IIFL Securities projects taking place over the next three years.
It is anticipated that Vodafone Idea will raise debt in addition to receiving equity injection, perhaps raising a total of Rs 45,000 crore. This should allow the telecom operator to close the gap with its competitors in terms of 4G coverage and capacity.
"This would allow faster 2G to 4G user upgrades in addition to stopping subscriber losses.This upgrade and direct rate increases should cause Vi's ARPU to increase from Rs 145 in 3QFY24 to Rs 241 in FY27," the statement stated.
According to IIFL, there is a good probability that the AGRcurative petition will be granted. Taking into account the conversion of Rs 35,000 crore in government debt into equity, it proposed a June 2025 objective of Rs 14 per share. The FPO price carries a minimal negative risk, it stated.
"There is a decent chance of a reduction in AGR liability, a positive for Bharti and Vi," it stated.
Vodafone Idea has proposed to use the net proceeds from the new issue to finance equipment for the Rs 12,750 crore network infrastructure expansion, which includes the establishment of new 5G sites, the capacity expansion of existing 4G sites, and the establishment of new 4G sites.
It plans to use the remaining funds for general corporate operations and certain deferred payments for spectrum to the DoT and the GST thereon totaling Rs 2,175 crore.
