Vodafone Idea announces India's largest follow-on offering, to raise Rs 18,000 crore via FPO

Vodafone Idea share sale: Cash-strapped telecom company Vodafone Idea announced on Friday its plans to raise a staggering Rs 18,000 crore through a follow-on public offering (FPO) of new shares. This share sale is the largest such offering in India's history, after Adani Enterprises scrapped a Rs 20,000 crore fully subscribed FPO on its final date amid the Hindenburg saga.

In February, Vodafone Idea disclosed that it would raise up to Rs 20,000 crore through equity, with a portion of this sum, Rs 2,000 crore, from an unnamed promoter entity.

The public offering is scheduled to commence on April 18, welcoming bids from investors until April 22, according to an exchange filing by the company.

The company's Board of Directors, in a meeting held on April 11, approved the red herring prospectus dated April 11, 2024. This prospectus, detailing the further public offering of equity shares amounting to up to Rs 18,000 crore, has been filed with the Registrar of Companies, Ahmedabad, Gujarat.

Furthermore, Vodafone Idea has set a Capital Raising Committee meeting for April 12, 2024, to determine the Price Band and any associated discounts permitted under regulatory provisions. Additionally, Vodafone Idea will engage in roadshows and investor interactions across various Indian cities from April 15, 2024, until the Bid Closing Date, fostering dialogue and garnering investor interest.

It's noteworthy that the Company has uploaded the special purpose interim condensed consolidated financial statements for the nine-month period ending December 31, 2023, and December 31, 2022, on its website, offering stakeholders transparency and insight into its financial performance.