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Monday, April 22, 2024

Vodafone Idea FPO subscribed 6X on final day, institutional bidders pour money :-money control news April 22,2024

 

Vodafone Idea’s follow-on public offer (FPO) was subscribed more than 6 times by April 22, the final day of bidding, with investors bidding for 8,011.8 crore equity shares, subscription data from exchanges showed.

The country's third-largest telecom operator has offered 1,260 crore shares in the Rs 18,000-crore FPO, the largest such offering in the country.TThis move is part of a larger strategy to gather Rs 45,000 crore through a combination of debt and equity.This move is part of a larger strategy to gather Rs 45,000 crore through a combination of debt and equity.

Qualified institutional buyers (QIBs) have taken the lead, subscribing 17.6 times the portion reserved for them. Non-institutional investors purchased 4.1 times their allotted quota of shares reserved. Retail investors picked 90 percent of their allotted quota of shares.

The telecom giant raised Rs 5,400 crore from institutional investors via the anchor book in the upper price band of Rs 11. The price band for the offer has been fixed at Rs 10-11 apiece.Citigroup, Goldman Sachs, Morgan Stanley, GQG Partners, Fidelity, UBS Fund Management, Redwheel Funds, HDFC Mutual Fund, Government Pension Fund Global, Carnelian Capital, Copthall Mauritius Investment, and Societe Generale were among the anchor investors.

Vodafone Idea will spend Rs 12,750 crore of the net issue proceeds for the expansion of the network infrastructure by setting up new 4G and 5G sites and the expanding the capacity of existing 4G sites.

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