New Delhi: Money-strapped Vodafone Thought on Friday introduced a follow-on public supply of as much as Rs 18,000 crore at a value band of Rs 10-11 per share, marking the most important FPO within the nation. The fundraise — which comes shut on the heels of a Rs 2,075-crore fund infusion by Aditya Birla group by way of a preferential share situation earlier this month, would give the ailing telco the firepower to enhance its positioning within the Indian telecom market, the place it at the moment trails bigger rivals comparable to Reliance Jio and Bharti Airtel, by a large margin.
The funds would additionally assist VIL shore up funds for the much-delayed 5G rollout and strengthening 4G providers, and in fee of vendor dues. VIL has been hemorrhaging subscribers month after month and combating a determined battle for survival saddled with debt of Rs 2.1 lakh crore and quarterly losses.
In accordance with a statutory submitting on Friday, VIL’s follow-on supply will open on April 18 and shut on April 22. “The Board of Administrators of the corporate, at its assembly held on April 11, 2024, authorised Additional Public Providing (FPO) of fairness shares, aggregating as much as Rs 18,000 crore. The capital elevating committee in its assembly held as we speak that’s April 12, 2024, authorised the worth band for the FPO issuance,” the corporate stated in a BSE submitting.
Vodafone Thought shares, nevertheless, tanked in early commerce following the announcement of the Rs 18,000-crore FPO. The ground value for the mega supply has been set at Rs 10 and the cap at Rs 11 per fairness share.
The upper finish of the worth band (Rs 11) is at a reduction of about 26 % in comparison with the just lately authorised preferential situation value to the promoter entity at Rs 14.87 and a reduction of about 15 % in comparison with the final closing value of Rs 12.95.
A minimal bid lot will likely be 1,298 fairness shares and within the multiples of 1,298 fairness shares, thereafter, the corporate stated. The back-of-the-envelope calculations present that on the higher finish of the worth band, the minimal software quantity would add as much as Rs 14,278 for a single lot of shares.
The board has additionally fastened the anchor investor bid/supply interval to be April 16, 2024. The current preferential situation of VIL has been a precursor of kinds to this blockbuster fundraising plan by the crisis-ridden telco.
