Ailing telecom operator Vodafone Idea (VIL) said it plans to raise up to £1.8 billion through share sale in the biggest follow-on public offer (FPO) as it moves to mobilise resources to invigorate operations and work towards launching 5G.
Vodafone Idea shares will be issued, under the FPO, in a price band of Rs 10-11 apiece against last week's closing price of nearly Rs 13 on the BSE.
The share sale will open on April 18 and close on April 22, the country’s third-largest telecom carrier said in an official filing.
This will be the largest FPO surpassing the previous highest of £1.5 bn share sale by Yes Bank in 2020. VIL’s fundraising, which comes close on the heels of £207.5 mn capital infusion by Aditya Birla group via a preferential share issue earlier this month, would give the telecom company money to shore up its positioning in the market, where it currently trails Reliance Jio and Bharti Airtel.
The fund-raise would also help VIL shore up finances for the much-delayed 5G rollout, strengthening 4G services, and clearing vendor dues. VIL has been losing subscribers and fighting a battle for survival, saddled with debt of £21 bn and continuing quarterly losses.
