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BusinessVodafone Idea announces mega Rs. 18,000 crore FPO, largest in India, to...

Vodafone Idea announces mega Rs. 18,000 crore FPO, largest in India, to boost 5G rollout and arrest subscriber losses

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Vodafone Idea, the third largest telecom operator in the country, has announced plans to raise up to Rs. 18,000 crore through a Follow-On Public Offering (FPO). This makes it the largest FPO ever conducted in the Indian stock market.

As per the company's regulatory filing, the FPO share price band is set between Rs. 10-11. This represents a 26% discount to the recent preferential issue price of Rs. 14.87 per share allotted to promoter Aditya Birla Group. The funds raised through this mega share sale event will help Vodafone Idea strengthen its financial position and invest heavily in network expansion.

As stated by the telco's CEO, the key reason for recent subscriber losses is lack of adequate 4G coverage compared to rivals. The FPO proceeds will enable Vodafone Idea to set up 22,000 new 5G sites and 26,000 additional 4G towers across its priority circles over next two years. This will help improve network experience for customers and arrest subscriber attrition.

Part of the proceeds will also be used to pay off some of the operator's staggering government dues related to adjusted gross revenue and spectrum purchase. If successful, this monumental FPO will provide the much needed growth capital to Vodafone Idea as it aims to compete fiercely in the fiercely competitive Indian telecom market.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

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