Vodafone Idea raises Rs 5,400 cr from over 70 anchor investors
Mumbai: Vodafone Idea has garnered Rs 5,400 crore from 74 anchor investors, according to a statement released on Wednesday.
Notable investors among them are GQG Partners, The Master Trust Bank of Japan, UBS, Morgan Stanley Investment Management, Citigroup Global Markets, Australian Super, Fidelity, Quant, and Motilal Oswal.
The telecom company, ranked third, aims to raise Rs 18,000 crore through India's largest follow-on public offering, slated to commence on Thursday, April 18.
The public offer, with a price range of Rs 10-11, will run until April 22.
The telecom company allocated 491 crore shares to anchor investors at Rs 11 per share.
Among these, the highest proportion, constituting 26 percent of the total shares allocated to anchor investors, went to US-based GQG Partners, valued at Rs 1,345 crore.
Fidelity Investments contributed approximately Rs 772 crore to the FPO. Troo Capital and Australian Super also committed Rs 331 crore and Rs 130 crore, respectively.
Around 16.2 percent of the total allocation, amounting to Rs 874 crore, was assigned to five domestic mutual funds. Motilal Oswal Midcap Fund spearheaded this group with an investment of Rs 500 crore.
According to its red herring prospectus (RHP), Vodafone Idea plans to allocate the raised capital towards constructing new 5G sites, expanding its 4G network, and deferring spectrum payments.
Of the total proceeds, Rs 12,750 crore is earmarked for network infrastructure expansion for both new 4G and 5G sites and improving the capacity of existing ones.
Out of the Rs 12,750 crore, Rs 5,720 crore will be directed towards setting up the 5G network.
The company aims to establish 10,000 new 5G sites in FY25 with an expenditure of Rs 2,600 crore and 12,000 more in FY26 with a spend of Rs 3,120 crore.
During a recent press conference, Vodafone Idea's management stated its intention to cover 40% of its revenue-contributing subscribers with 5G services within the next 24-30 months, reported Moneycontrol.
The company said that procurement of 5G network equipment will begin upon securing funding and rolling out 5G services in select areas is expected within 6-9 months post the offering.
IBNS
Senior Staff Reporter at Northeast Herald, covering news from Tripura and Northeast India.
Related Articles
CRR cut, AI ethics push, and SORR benchmark: Experts hail RBI’s pragmatic policy moves
Mumbai: The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% while the cash reserve ratio (CRR) has been slashed by 50 basis points to 4 percent, media reports said.
JP Morgan gives 'overweight' rating to Adani Group bonds
Mumbai: US investment bank JP Morgan has assigned an 'overweight' rating to four bonds issued by the Adani Group, citing the group's capacity to scale and grow through internal cash flows, which reduces the likelihood of credit stress.
LG Electronics files DRPH with SEBI; IPO size expected to be over RS 15,000 cr
Mumbai: South Korean electronics giant LG Electronics has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Friday for the proposed public listing of its Indian business, according to a notification on the Bombay Stock Exchange (BSE).
De-dollarisation not on India's agenda; derisking domestic trade is: RBI Governor Shaktikanta Das
Mumbai: India has not initiated any steps towards de-dollarisation and is solely focused on mitigating risks to domestic trade from geopolitical uncertainties, Reserve Bank of India (RBI) Governor Shaktikanta Das clarified on Friday, media reports said.
Latest News
Nicole Kidman, Keith Urban separate after 19 years
Accenture lays off 11,000 employees in AI-driven restructuring
Shameful act: Mahatma Gandhi statue vandalised in London's Tavistock Square, Indian High Commission condemns
Modi backs Trump’s Gaza peace plan, calls it pathway to lasting stability
