Vodafone Concept Plans Rs 18,000 Crore FPO Subsequent Week

Vodafone Concept (Vi) is gearing as much as launch a follow-on public supply (FPO) to lift Rs 18,000-20,000 crore by the center of the following week, sources have informed Moneycontrol.

The debt-laden telecommunications firm has enlisted Jefferies, SBI Caps and Axis Capital as lead managers for the FPO, the most important choices of its form in India. Nonetheless, not one of the banks are underwriting the problem, sources mentioned.

Sure Financial institution’s Rs 15,000 crore-FPO has been the most important such share sale within the Indian market, to this point.

Adani Enterprises Rs 20,ooo-crore FPO in January 2023 would topped it however the Gautam Adani flagship firm known as off the supply after the Hindenburg Analysis report alleged a number of governance lapses on the Adani group.

Vodafone Concept has secured commitments from anchor buyers, together with each overseas and home institutional buyers, sources mentioned, signalling preliminary help for FPO.

The fundraise has the backing of the federal government of India, which is the most important sharehodler within the firm at 33%, sources mentioned, including that some buyers reached out to the federal government earlier than committing to spend money on the FPO.

Emails despatched to Vi and SBI Capital remained unanswered, whereas Jefferies and Axis Capital declined to remark.

The transfer comes amid intense competitors in and monetary challenges in
the telecom sector.

Vodafone Concept has been grappling with a big debt burden and operational losses, exacerbated by regulatory points, leading to a decline in its subscriber base and market share.

On April 5, Vodafone Concept’s board authorised the allotment of shares value Rs 2,075 crore to Oriana Investments Pte Ltd, an Aditya Birla Group entity and a part of the promoter group, on a preferential foundation.

The problem worth is Rs 14.87, larger than the closing worth of Rs 13.36 on the BSE on Friday.

The proceeds from the providing are anticipated to supply much-needed liquidity and help to the corporate.

In line with the Telecom Regulatory Authority of India’s (TRAI) knowledge, Vodafone Concept subscriber base fell by 1 million to 220.5 million in February. The telco has been dropping two to 6 million subscribers each quarter for the previous few quarters as a result of subscribers transferring to different service suppliers. Vodafone Concept’s total person base was 215.2 million on December 31.

Business specialists say the telco must urgently spend money on infrastructure to enhance the standard of service and retain subscribers.

At 11.48 pm, the Vodafone Concept inventory was buying and selling at Rs 12.65 on Nationwide Inventory Change, down virtually 2 p.c from the earlier shut.

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