Vodafone Idea's follow-on public offer opens for subscription; Read here

A follow-on public offer (FPO) is the issuance of shares to investors by a company listed on a stock exchange after its initial public offerings.

Vodafone Idea's FPO price band has been set in the range of Rs 10 to Rs 11 per share.

There is a minimum bid limit of 1,298 equity shares, and beyond that, bids may be placed in multiples of 1,298 equity shares.

The Vodafone Idea FPO total offer size comprises fresh issue of equity shares aggregating up to Rs 18,000 crore. Of those Rs 5,400 has been allocated as per the anchor book.

Talking to ANI, Vodafone Idea's CEO Akshaya Moondra said the allotment of shares is expected on April 23 and subsequent listing on April 25.

According to the red herring prospectus (RHP), the net proceeds from the new issue will be used by the company to finance acquisition of equipment for the expansion of its network infrastructure (the establishment of new 4G sites; the augmentation of capacity at both existing and new 4G sites; and the establishment of new 5G sites).

Also, the proceeds would be used for payment of certain deferred payments for spectrum to the DoT and the GST thereon; and for general corporate purposes.

As per reports, the government stake in Vodafone idea is 32.19 per cent based on the shareholding pattern for the quarter that ended in March 2024.

Meanwhile, on the day of the opening of FPO, the telecom operator's shares rose about 2 per cent to Rs 13.20. (ANI)