Vodafone Idea may enter MSCI index, likely to bring $275-$280 million inflows
Vodafone Idea FPO, Vodafone Idea share price: Vodafone Idea, which seems to have gotten a new lease of life with its Rs 18,000 crore follow-on public (FPO), India’s biggest so far, may enter the MSCI index in August 2024. As per reports, if the price remains supportive, the stock stands a chance of getting added to the index. The supportive price of the stock is around Rs 12. If included, it could bring inflows in the range of $275 to $280 million.
The telco planned to raise Rs 20,000 crore via equity, and this FPO was part of it. It also plans to raise Rs 25,000 crore through debt. The capital will be utilised for 4G coverage, 5G rollout, and capacity expansion. The management aims to start 5G services in some places after six to nine months of issue and to provide 5G services to subscribers (40 per cent of revenue) in the next 24–30 months.
The FPO, which ran between April 18 and April 22, received a total bid, including anchor investors, of Rs 94,000 crore, with more than 11.6 lakh applications received.
Telecom operator Vodafone Idea’s (VIL) board has fixed the FPO offer price at Rs 11 per equity share, according to a regulatory filing. The anchor investor offer price of Rs 11 per equity share has also been greenlit by the board. “… Following resolutions were also passed… Determined and approved the offer price of Rs 11 per equity share… Approved the anchor investor offer price of Rs 11 per equity share,” VIL informed.
The fundraising will arm VIL with ammo to improve its competitive positioning in the Indian telecom market, where it trails Reliance Jio and Bharti Airtel by a wide margin.
“Further to our letter dated April 17, 2024, intimating you about the meeting of the board of directors of the company to be held on April 22, 2024, in respect of the offer, we wish to inform you that the Board, at its meeting held today, which is April 22, 2024, has approved and adopted the prospectus dated April 22, 2024, in connection with the offer,” VIL said.
The prospectus has been filed with the Registrar of Companies, Gujarat, at Ahmedabad, and submitted to the Securities and Exchange Board of India, BSE Limited, and National Stock Exchange of India Limited, it added.
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