Telecom service provider Vodafone Idea Ltd. will roll out 5G services after its FPO (follow-on public offering) funding, its Chief Executive Officer Akshaya Moondra said on Monday, April 15. Moondra emphasised that the company is equipped with a 5G-ready radio architecture and possesses 5G spectrum in 17 priority circles.
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Addressing growth strategies, Moondra highlighted the significance of Average Revenue Per User (ARPU) enhancement during the FPO press conference. The company recently disclosed its intention to raise up to ₹18,000 crore later this month through the largest FPO in India.
The FPO, with a floor price of ₹10 per share, is scheduled to be open for bids from April 18th to April 22nd. Vodafone Idea, ranked third in terms of subscribers among telecom carriers in India, stated that investors can bid for a minimum lot of 1,298 equity shares.
The minimum application amount, based on the upper end of the price band, amounts to ₹14,278 for one lot of shares in the FPO. Investors have the flexibility to bid in multiples of 1,298 equity shares thereafter.
A Follow-On Public Offering is a mechanism through which a listed company issues new shares to investors or existing shareholders, usually the promoters, to raise additional funds.
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Vodafone Idea’s Capital Raising Committee will meet again tomorrow (April 16) to determine the purpose of the allocation of equity shares to successful anchor investors.
The telco’s board had approved raising up to ₹20,000 crore via equity on February 27. A day later, CNBC-TV18 first reported that the company may consider an FPO as part of the fundraising activity.
The shares issued under the FPO will not be registered under the US Securities Act of 1933 and may not be offered or sold within the US unless there is an exemption from registration requirements of the said act and other state securities laws. “No public offering of securities in the United States is contemplated,” as per Vodafone Idea’s exchange filing.
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Apart from the fundraise, Vodafone Idea is also said to be in talks with banks to tie up debt funding, taking the total fundraise to ₹45,000 crore as a combination of equity and debt.
