Vodafone Idea FPO: Vodafone Idea, India’s third major telecom sector player, is looking to raise up to Rs 20,000 crore crore via a follow-on public offer (FPO), company in the early hours of Friday, informed the exchanges.
Vodafone Idea’s FPO will open on April 18 and close on April 22. The anchor investor offers will be approved on April 16, the company said in an exchange filing.
The board has approved the adoption and filing of the Red Herring Prospectus (RHP) for the same with the Registrar of Companies, Gujarat, the exchange filing said.
During the intraday trade on April 10, Vodafone Idea’s shares were edging lower. After the report related to the planned FPO was out, the shares briefly gained as against the previous day’s close.
Vodafone Idea will also participate in road shows and interact with investors / analysts starting April 15 till the closing of the offer.
What Is A FPO?
A Follow on Public Offer is a process by which a company, that is already listed on the bourses, issues new shares to investors or existing shareholders, generally the promoters. The company raises additional funds through the issue of these shares.
Apart from the Rs 20,000 crore equity fund raise, Vodafone Idea is also said to be in talks with banks to tie up debt funding, taking the total fund raise to Rs 45,000 crore as a combination of equity and debt.
The shares issued under the FPO will not be registered under the US Securities Act of 1933 and may not be offered or sold within the US, unless there is an exemption from registration requirements of the said act and other state securities laws. “No public offering of securities in the United States is contemplated,” Vodafone Idea’s exchange filing highlighted.
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