In a significant development for the telecom sector in India, Vodafone Idea (VIL) has raised an impressive Rs 18,000 crore through its follow-on public offering (FPO). The FPO, which concluded on Monday evening, witnessed overwhelming demand from institutional investors, resulting in a subscription rate of almost seven times the offer size. This landmark fundraising will significantly strengthen VIL’s financial position and provide the company with the necessary resources to enhance its competitiveness in the Indian telecom landscape.
VIL’s board of directors had previously fixed the FPO offer price at Rs 11 per equity share, a decision that received approval from anchor investors as well. The funds raised through the FPO will enable VIL to improve its competitive positioning in the Indian telecom market, where it currently trails behind industry leaders Reliance Jio and Bharti Airtel.
VIL has filed the prospectus related to the FPO with the Registrar of Companies, Gujarat, in Ahmedabad. The prospectus has also been submitted to the Securities and Exchange Board of India (SEBI), BSE Limited, and the National Stock Exchange of India Limited (NSE).
