Vodafone Idea FPO: Debt-ridden telecom company Vodafone Idea has announced its plans to offer shares worth Rs 18,000 crore in a further public offering (FPO) from April 18-22, with each share priced between Rs 10-11.
This decision comes after a board meeting held by the company earlier today. The price of Rs 11 per share represents a 26% discount from the recently approved preferential issue price to the promoter entity at Rs 14.87 and a 15% discount from the last closing price of Rs.12.95, states an ET report.
The floor price for the FPO is set at Rs 10 per share, with a cap price of Rs 11. Interested investors need to apply for a minimum bid lot of 1,298 shares and its multiples thereafter.
Bids for anchor investors are scheduled to open on April 16, with a meeting of the Capital Raising Committee planned for the same day to allocate equity shares to successful anchor investors. “A meeting of the Capital Raising Committee is scheduled to be held on 16 April 2024 for the purposes of allocation of Equity Shares to the successful Anchor Investors pursuant to the Offer and for determination of the Anchor Investor Allocation Price,” Vodafone Idea said in a filing.
In response to the announcement, Vodafone shares experienced a 3% decline, reaching a low of Rs 12.51.
Over the past year, the stock has more than doubled in value. The company recently approved a preferential share issue to raise Rs 2,075 crore from an Aditya Birla Group (ABG) entity, setting the stage for a broader funding program crucial to its financial recovery.
In the March quarter, Vi is expected to report a loss of 4.5 million subscribers, with a forecasted addition of 1 million 4G subscribers. Revenue is likely to marginally decline by 0.8% quarter-on-quarter, with a projected increase in ARPU by 1.1% to Rs 147.
Emkay analysts predict a flattish margin growth, with a slight increase to 40.9% due to lower marketing expenses.
This decision comes after a board meeting held by the company earlier today. The price of Rs 11 per share represents a 26% discount from the recently approved preferential issue price to the promoter entity at Rs 14.87 and a 15% discount from the last closing price of Rs.12.95, states an ET report.
The floor price for the FPO is set at Rs 10 per share, with a cap price of Rs 11. Interested investors need to apply for a minimum bid lot of 1,298 shares and its multiples thereafter.
Bids for anchor investors are scheduled to open on April 16, with a meeting of the Capital Raising Committee planned for the same day to allocate equity shares to successful anchor investors. “A meeting of the Capital Raising Committee is scheduled to be held on 16 April 2024 for the purposes of allocation of Equity Shares to the successful Anchor Investors pursuant to the Offer and for determination of the Anchor Investor Allocation Price,” Vodafone Idea said in a filing.
In response to the announcement, Vodafone shares experienced a 3% decline, reaching a low of Rs 12.51.
Over the past year, the stock has more than doubled in value. The company recently approved a preferential share issue to raise Rs 2,075 crore from an Aditya Birla Group (ABG) entity, setting the stage for a broader funding program crucial to its financial recovery.
In the March quarter, Vi is expected to report a loss of 4.5 million subscribers, with a forecasted addition of 1 million 4G subscribers. Revenue is likely to marginally decline by 0.8% quarter-on-quarter, with a projected increase in ARPU by 1.1% to Rs 147.
Emkay analysts predict a flattish margin growth, with a slight increase to 40.9% due to lower marketing expenses.
