The forthcoming Follow-On Public Offering (FPO) of Vodafone Idea is poised to potentially secure the title of India's most substantial offering, should it achieve success, surpassing Yes Bank's FPO worth Rs 15,000 crore in July 2020. Notably, Adani Enterprises' FPO in 2023, with a valuation of Rs 20,000 crore, despite garnering a full subscription, was ultimately canceled.
Here are 10 key aspects to familiarize oneself with regarding the Vodafone Idea FPO:
1. **Date**: Bidding for the FPO commences on Thursday, April 18, and concludes on Monday, April 22. Anchor investor bidding commenced on Tuesday, April 16.
2. **Price Band**: The Aditya Birla Group has stipulated a price range of Rs 10 to Rs 11 per equity share, each bearing a face value of Rs 10.
3. **Issue Size**: The total offer size for the Vodafone Idea FPO is pegged at Rs 18,000 crore.
4. **Details of the Issue**: The FPO encompasses a fresh issue of up to 1,636.36 crore equity shares, amounting to Rs 18,000 crore.
5. **Lot Size**: Each FPO lot comprises 1,298 shares. Investors are eligible to bid for a minimum of 1,298 equity shares, with multiples of 1,298 shares thereafter. Retail investors are required to commit at least Rs 14,278.
6. **Reservation in FPO**: The allocation breakdown for the FPO entails 50% reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and the remaining 35% for retail investors.
7. **Lead Managers**: Axis Capital, Jefferies India, and SBI Capital Markets serve as the book-running lead managers for the Vodafone Idea FPO.
8. **Registrar**: Link Intime India Private Ltd has been designated as the registrar for the Vodafone Idea FPO.
9. **Listing Date**: It is anticipated that the allotment of Vodafone Idea FPO shares will be finalized on April 23, with shares being credited to demat accounts by April 24.
10. **Objectives**: The proceeds from the fresh issue of equity shares are earmarked for expanding Vodafone Idea's network infrastructure, enhancing 4G and 5G capabilities, and addressing certain deferred payments for spectrum to the DoT, alongside other general corporate purposes.
This fundraising endeavor holds significance for Vodafone Idea, given its existing debt burden of Rs 2.1 lakh crore, inclusive of obligations to the government for spectrum and adjusted gross revenues.
