Vodafone Idea’s FPO of Rs 20,000 Crore is Expected to Open Next Week

Vodafone Idea is likely to launch a Rs 20,000 follow-on offer (FPO) in the next week. The price is expected to be significantly discounted, as was set for the preferential issue. All the relevant details related to the FPO should be filed with the market regulator SEBI by today or tomorrow. 

The reserved portion of anchor Investor and qualified institutional investors have been fully subscribed. 50 percent of the book is usually reserved for the QIB quota, 35% for the retail investors and the rest is for the HNIs. 

The board of Vodafone Idea has already approved the preferential share issue to raise Rs 2,075 crore from the Aditya Birla Group. ABG set the stage for the wider funding programme. 

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Vodafone Idea: How FPO Money Will Be Used?

Vodafone Idea aims to use the money to repay vendors, strengthen its 4G network, and fund the launch of 5G services. VI's competitors are Reliance JIO and Bharti Airtel. The money will help the company stay in the market and provide services to its users. 

Recently, Goldman Sachs estimated that, in the absence of headline rate increases, VI would require Rs 65,000 to 83,000 crore of fresh capital over next two years to build a mobile broadband that can compete with Airtel and Jio.

Vodafone Idea’s debt widened to Rs 2.14 lakh crore in the fiscal third quarter and cash & cash equivalents were at Rs 318.9 crore. Company’s bank debt currently stands at Rs 4,500 crore. It is also staring for the debt payments of near Rs 70,000 crore for adjusted gross revenue (AGR) dues, once the moratorium on spectrum payments ends in FY26. 

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