NEW DELHI: Debt-saddled telecom operator Vodafone Idea Ltd’s Rs 18,000 crore follow-on providing (FPO) on Friday picked up momentum with near half of the difficulty being subscribed, largely by institutional investors. Over Rs 12,000 crore, together with Rs 5,400 crore from anchor investors, has been raised by the top of day 2 of the FPO, in accordance with inventory market data.
Of the 1,260 crore shares on provide, 617.46 crore shares have been subscribed on Friday, in accordance with data on the BSE.
Qualified institutional patrons picked up 93 per cent of their 360 crore shares reserved for them whereas non-institutional investors sought 75 per cent out of 270 crore shares earmarked for them.
Response from retail investors, who’ve been supplied the largest chunk, was muted with simply 13 per cent of 630 crore shares being picked up.
Shares are being supplied in a value band of Rs 10-11 apiece, decrease than Rs 12.92 closing value of the share on the BSE on Friday. Vodafone Idea shares misplaced 2.12 per cent in buying and selling on Friday.
Vodafone Idea bought shares price Rs 5,400 crore to institutional investors within the first part earlier this week. Investment corporations GQG and Fidelity picked up many of the shares in the course of the anchor guide allocation.
The FPO, the most important ever, is to shut on April 22.
Prior to this, the most important FPO within the Indian market was a Rs 15,000 crore share sale by YES Bank in 2020.
The fundraise would give the ailing telco the firepower to enhance its positioning within the Indian telecom market, the place it presently trails bigger rivals such as Reliance Jio and Bharti Airtel, by a large margin.
The funds may even assist Vodafone Idea shore up funds for the much-delayed 5G rollout and strengthening 4G providers, and cost of vendor dues.
The firm had beforehand mentioned it plans to lift Rs 45,000 crore, through fairness and debt, to assist broaden its 4G community and roll out 5G providers.
Of the whole FPO proceeds, the corporate plans to make use of Rs 12,750 crore for buy of kit for the enlargement of its community infrastructure by organising new 4G websites; increasing the capability of current 4G websites and for organising new 5G websites, as per the share sale prospectus.
It will spend Rs 5,720 crore of the Rs 12,750 crore earmarked for community enlargement on organising its 5G community.
Another Rs 2,175.31 crore might be utilised for making deferred funds for spectrum.
The remainder of the FPO proceeds might be utilized by the corporate in the direction of numerous normal company functions such as funding working capital necessities.
Of the 1,260 crore shares on provide, 617.46 crore shares have been subscribed on Friday, in accordance with data on the BSE.
Qualified institutional patrons picked up 93 per cent of their 360 crore shares reserved for them whereas non-institutional investors sought 75 per cent out of 270 crore shares earmarked for them.
Response from retail investors, who’ve been supplied the largest chunk, was muted with simply 13 per cent of 630 crore shares being picked up.
Shares are being supplied in a value band of Rs 10-11 apiece, decrease than Rs 12.92 closing value of the share on the BSE on Friday. Vodafone Idea shares misplaced 2.12 per cent in buying and selling on Friday.
Vodafone Idea bought shares price Rs 5,400 crore to institutional investors within the first part earlier this week. Investment corporations GQG and Fidelity picked up many of the shares in the course of the anchor guide allocation.
The FPO, the most important ever, is to shut on April 22.
Prior to this, the most important FPO within the Indian market was a Rs 15,000 crore share sale by YES Bank in 2020.
The fundraise would give the ailing telco the firepower to enhance its positioning within the Indian telecom market, the place it presently trails bigger rivals such as Reliance Jio and Bharti Airtel, by a large margin.
The funds may even assist Vodafone Idea shore up funds for the much-delayed 5G rollout and strengthening 4G providers, and cost of vendor dues.
The firm had beforehand mentioned it plans to lift Rs 45,000 crore, through fairness and debt, to assist broaden its 4G community and roll out 5G providers.
Of the whole FPO proceeds, the corporate plans to make use of Rs 12,750 crore for buy of kit for the enlargement of its community infrastructure by organising new 4G websites; increasing the capability of current 4G websites and for organising new 5G websites, as per the share sale prospectus.
It will spend Rs 5,720 crore of the Rs 12,750 crore earmarked for community enlargement on organising its 5G community.
Another Rs 2,175.31 crore might be utilised for making deferred funds for spectrum.
The remainder of the FPO proceeds might be utilized by the corporate in the direction of numerous normal company functions such as funding working capital necessities.
