Vodafone Idea has successfully raised approximately ₹5,400 crore from anchor investors, including prominent names like GQG Partners, Fidelity Investments, UBS Fund Management, Jupiter Fund Management, and Australian Super, alongside notable Indian investors such as India Infoline, Motilal Oswal, HDFC Mutual Fund, SBI General Insurance, and Quant.
In an announcement made to the exchanges in the early hours of Wednesday, the telecom giant disclosed the allocation of 491 crore shares to anchor investors at ₹11 per share. Among these investors, US-based GQG Partners secured the largest share allocation, valued at ₹1,345 crore, followed by Fidelity Investments with an investment of approximately ₹772 crore.
Other significant investments include Troo Capital and Australian Super, contributing ₹331 crore and ₹130 crore, respectively. Furthermore, a substantial portion of shares, totaling 16.20% and amounting to ₹874 crore, were allocated to five domestic mutual funds, with Motilal Oswal Midcap Fund leading the way with an investment of ₹500 crore.
In efforts to generate interest and secure investments, executives of the telecom giant have actively engaged in roadshows since Monday following the announcement of the ₹18,000 crore follow-on public offer (FPO), marking it as the largest FPO by an Indian company to date.
The FPO, priced at ₹10-11 per share, is set to open for retail investors from April 18 to April 22. Notably, the minimum bid lot for subscription has been fixed at 1,298 equity shares.
The proceeds from the FPO hold significant importance for Vodafone Idea as it prepares to roll out 5G services within the next six to nine months, aiming to offer 5G coverage within 24-30 months in regions contributing 40% of its revenues. Currently, Vodafone Idea stands as the only private telecom company without 5G services, unlike its competitors Airtel and Reliance Jio.
To support its network expansion plans, the cash-strapped telco plans to allocate ₹12,750 crore until FY26, with ₹5,720 crore earmarked for setting up 22,000 5G sites and the remainder allocated for establishing 26,000 new 4G sites, upgrading existing 4G sites, and addressing general corporate needs. Additionally, the telco owes ₹2,170 crore to the government in FY25 as an installment for previously acquired spectrum, and the proceeds from the FPO will be utilized for this payment.
Following the FPO, the Indian government, holding a 32% stake in Vodafone Idea, is expected to see its share drop to approximately 24%. Analysts at BofA Securities anticipate a reduction in promoter shareholding from the current 50.3% to around 38%.
