Vodafone Idea FPO, India's largest to date, opens for subscription: Check latest GMP, price band

Vi FPO: Vodafone Idea Limited, India's third-largest telecom operator, kicked off its much-anticipated Follow-on Public Offer (FPO) today, April 18, 2024. This FPO is the largest in the country's history, with an ambitious target of raising Rs 18,000 crore.

Key details of FPO

• Price band: Rs 10 - Rs 11 per share
• Subscription period: April 18 - April 22, 2024
• Lot size: Minimum 1298 shares
• Listing: Expected on BSE & NSE by April 25, 2024
• Anchor investors: Rs 5,400 crore already secured from prominent global & domestic investors

The FPO has received a positive initial response, with the anchor book allocation successfully closed, raising Rs 5,400 crore from marquee investors like GQG Partners, Fidelity, and UBS Fund Management. This could potentially be the third-largest anchor book in India's FPO history.

Funds for growth and debt reduction

The proceeds from the FPO will be used by Vi to strengthen its position in the competitive Indian telecom market. The funds will be directed towards:

• Upgrading 4G network infrastructure
• Facilitating the rollout of 5G services (currently delayed)
• Settling outstanding vendor dues
• Reducing the company's significant debt burden (currently at Rs 2.1 lakh crore)

Vi has been struggling in recent years, losing subscribers to rivals Reliance Jio and Bharti Airtel. The company is aiming to use the FPO funds to bridge the gap and offer competitive services.  Earlier this year, VIL outlined a plan to raise Rs 45,000 crore through equity and debt to stay afloat.

Latest GMP

The current Grey Market Premium (GMP) for Vi FPO is Rs 1.70, indicating a potential listing price of around Rs 12.70 (price band cap + today's GMP). This translates to an estimated gain of 15.45 per cent per share.