One of India's largest telecom operators Vodafone Idea has finalized the pricing for its upcoming follow-on public offering (FPO). According to a key announcement, the company has decided on an offer price of Rs. 11 per share of equity for investors participating in the rights issue.
In a regulatory filing, Vodafone Idea informed that its board of directors approved this pricing during a recent meeting. The same rate of Rs. 11 per share was also locked in for anchor investors who commit funds prior to the opening of the FPO. With this decision, all the key terms have now been finalized ahead of the much-awaited rights issue that aims to raise crucial capital for the debt-ridden telecom major.
Vodafone Idea is betting big on the success of this FPO, as the proceeds will strengthen its balance sheet and fuel investments in network upgrades. The operator continues to lag the competition in network capabilities due to severe financial constraints over the past few years. Raising Rs. 18,000 crores through the issuance of new shares is expected to enable network expansions and better compete with dominant players like Jio and Airtel.
Overall, Vodafone Idea is leaving no stone unturned to boost participation in the forthcoming rights issue. With clarity now provided on pricing and other commercial aspects, investors can make informed decisions around subscribing to the FPO. A successful capital infusion will be key to Vodafone Idea's revival plans and restoring its place among India's leading telecom brands over the long run.
