Vodafone Idea Secures Rs 5,400 Cr Investment From Morgan Stanley, Goldman Sachs, And Five Other Prominent Investors Ahead of FPO Opening – Check Details (Image source: VI)
Vodafone Idea FPO: Vodafone Idea (VIL) has concluded its anchor book allocation just before the commencement of its highly anticipated Follow-on Public Offering (FPO), garnering approximately Rs 5,400 crore from both global and domestic heavyweight investors.
Morgan Stanley, Goldman Sachs, And Five Other Prominent Investors
The list of investors subscribing to the anchor book boasts distinguished names including GQG Partners, UBS, Morgan Stanley India Investment Fund, Citigroup Global Markets Mauritius, Goldman Sachs, and Fidelity, among others.
Vodafone Idea’s Capital Raising Committee has greenlit the allocation of 490.9 crore equity shares to the anchor investors.
According to a BSE filing, the company stated, “The Capital Raising Committee of the Board of Directors of the company at its meeting held on April 16, 2024, in consultation with the Book Running Lead Managers to the issue has finalized allocation of 4,90,90,90,908 equity shares to anchor investors at an anchor investor allocation price of Rs 11 per equity share (including share premium of Rs 1 per equity share).”
Price Band and FPO Details
The anchor book attracted significant interest from both global and domestic investors, all subscribing at the upper end of the price band, set at Rs 11 per equity share.
Cash-strapped Vodafone Idea has announced a Follow-on Public Offer (FPO) of Rs 18,000 crore at a price band of Rs 10-11 per share, marking the largest FPO in the country.
This substantial fundraising by VIL, following a recent infusion of Rs 2,075 crore by the Aditya Birla Group through a preferential share issue, holds strategic significance. It provides the financially stressed telco with the necessary ammunition to enhance its competitive positioning in the Indian market, where it lags behind larger competitors Reliance Jio and Bharti Airtel.
The funds raised will also bolster VIL’s capabilities for the impending 5G rollout and fortify its existing 4G services.
Upcoming FPO Details
Vodafone Idea’s Follow-on Offer will open to public investors on April 18 and close on April 22. The book running lead managers for the FPO are Axis Capital Limited, Jefferies India Private Limited, and SBI Capital Markets Limited.
