Just ahead of FPO, Vodafone Idea raises Rs.5,400 crore from Anchor Investors
Telecom Giant Vodafone Idea has raised Rs.5,400 crore from close to 74 anchor investors, including GQG Partners, The Master Trust Bank of Japan, UBS, Morgan Stanley Investment Management, Citigroup Global Markets, Australian Super, Fidelity, Quant and Motilal Oswal.
Amidst the existing investors GQG has taken close to 26% of the total shares allocated to anchor investors. About 16% of the total allocation to anchor investors was allocated to 5 domestic mutual funds through a total of 11 schemes. This includes the HDFC Large and Mid cap fund and The Baroda BNP Paribas Multi Cap Fund.
This anchor allotment took place just a day before the company has opened their IPO Vodafone Idea's Rs. 18,000 crore FPO, India's largest ever, will open for subscription on Thursday 18th April and close on Monday 22nd April. Axis Capital, Jefferies India, and SBI Capital are the investment banks managing the FPO.
The anchor allotment will be the third largest after Paytm with Rs. 8,325 crore and LIC with Rs. 5,627 crore. Out of the total anchor book, 16.2% was allotted to five domestic mutual funds — HDFC, Motilal Oswal, Quant, Baroda BNP, and 360One — through 11 schemes.
Vodafone Idea has decided the price band of the FPO at Rs. 10-11 per share. The Vodafone Idea stock ended at Rs. 12.9 on Tuesday, down 1.9% from its previous close. The upper end of the price band is nearly 15% below the current stock price.
Out of the total expected amount of 18000 crore to be raised by the company, they are planning to use Rs. 12,750 crore on expanding the capacity of its existing and new 4G sites and setting up new 5G sites. Nearly, Rs.2,175 crore will be spent on deferred payments for spectrum to the Department of Telecommunications and the goods and services department.
Reportedly, the FPO will increase the company's paid-up capital to nearly Rs. 65,000 crore and the number of outstanding equity shares to 65,000 million.
The Telecom company has consistently reported losses in the past eight years, with its net loss and cash loss in 2022-23 standing at Rs. 29,371 crore and Rs.6,251 crore, respectively. The net loss was reported, as Rs. 23,563 crore and a cash loss of Rs. 6,681 crore during the April-December period of 2023-24.
Amidst the existing investors GQG has taken close to 26% of the total shares allocated to anchor investors. About 16% of the total allocation to anchor investors was allocated to 5 domestic mutual funds through a total of 11 schemes. This includes the HDFC Large and Mid cap fund and The Baroda BNP Paribas Multi Cap Fund.
This anchor allotment took place just a day before the company has opened their IPO Vodafone Idea's Rs. 18,000 crore FPO, India's largest ever, will open for subscription on Thursday 18th April and close on Monday 22nd April. Axis Capital, Jefferies India, and SBI Capital are the investment banks managing the FPO.
The anchor allotment will be the third largest after Paytm with Rs. 8,325 crore and LIC with Rs. 5,627 crore. Out of the total anchor book, 16.2% was allotted to five domestic mutual funds — HDFC, Motilal Oswal, Quant, Baroda BNP, and 360One — through 11 schemes.
Vodafone Idea has decided the price band of the FPO at Rs. 10-11 per share. The Vodafone Idea stock ended at Rs. 12.9 on Tuesday, down 1.9% from its previous close. The upper end of the price band is nearly 15% below the current stock price.
Out of the total expected amount of 18000 crore to be raised by the company, they are planning to use Rs. 12,750 crore on expanding the capacity of its existing and new 4G sites and setting up new 5G sites. Nearly, Rs.2,175 crore will be spent on deferred payments for spectrum to the Department of Telecommunications and the goods and services department.
Reportedly, the FPO will increase the company's paid-up capital to nearly Rs. 65,000 crore and the number of outstanding equity shares to 65,000 million.
The Telecom company has consistently reported losses in the past eight years, with its net loss and cash loss in 2022-23 standing at Rs. 29,371 crore and Rs.6,251 crore, respectively. The net loss was reported, as Rs. 23,563 crore and a cash loss of Rs. 6,681 crore during the April-December period of 2023-24.
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