Vodafone Idea FPO opens, raised Rs 5,400 crore from nearly 60 anchor investors

Shivani Arora

Vodafone Idea Ltd.’s which is the largest shareholder in the telecom operator has received support from the government for the upcoming ₹18,000 crore Follow on Public Offer (FPO). VI will launch India’s largest FPO on Thursday. It aims to raise Rs. 18000 crore through that.The telecom service provider is all set to launch its 5G services post its FPO and have around 40% of its revenue via 5G services within the next 2 or 3 years.

The FPO is scheduled to open on 18th April and will close on 22nd April.

 

What is FPO?

FPO (Follow on Public Offer) is a process by which a company, which is already listed on an exchange, issues new shares to the investors or the existing shareholders, usually the promoters. FPO is used by companies to diversify their equity base.
company uses FPO after it has gone through the process of an IPO and decides to make more of its shares available to the public or to raise capital to expand or pay off debt.

The main aim of Vodafone Idea is to built new 5G sites and to enhance its hefty Spectrum payments and associated GST dues. It’s goal is to stay competitive in the fast growing telecom market.

As of December 31, 2023, Vodafone Idea’s total debt was Rs 2.15 lakh crore. The company reported a net loss of Rs 6,985.9 crore for the December quarter, down from Rs 7,990 crore in the year-ago period. Revenue for the same period was Rs 10,673.1 crore, up 0.49 percent from the previous fiscal. EBITDA grew to 40.8 per cent in the quarter compared to 39.4 percent in the previous fiscal as per the reports.

“India’s economic growth needs a thriving telecoms sector. We need multiple operators to preserve competition & protect consumers,” the Finance Secretary said.

The secretary also highlighted the government’s aim to preserve competition within the sector. “Preserving competition is a major policy goal of the government & is reflected in the September 2021 telecom package and the large cap infusion to BSNL,” he said.

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I am Shivani Arora, a media student who is working as a freelancer Content Writer, news writer and social media handler with different agencies. I am a post graduate student who is self motivated and a hardworking person. My main aim is to excel in my career by learning and exploring new things.
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