Voda Idea secures Rs 5,400 crore from anchor investors, completes book allocation

Vodafone Idea (VIL) closes anchor book allocation ahead of FPO, raising Rs 5,400 crore from global and domestic investors. Investors include GQG Partners, UBS, Morgan Stanley, Citigroup, Goldman Sachs, Fidelity. 490.9 crore equity shares allocated to anchor investors at Rs 11 per share. FPO priced at Rs 10-11 per share, largest in India. Funds to improve competitive positioning, prepare for 5G rollout. VIL struggling with debt and losses. Public offer opens on April 18, closes on April 22.

Just ahead of its mega FPO opening to public investors, Vodafone Idea (VIL) has announced closure of its anchor book allocation, raising about Rs 5,400 crore from marquee global as well as domestic investors, according to a statutory filing by the telco.

The prominent line-up of investors who subscribed to the anchor book includes GQG Partners, UBS, Morgan Stanley India Investment Fund, Citigroup Global Markets Mauritius, Goldman Sachs and Fidelity, among others.

Vodafone Idea said its Capital Raising Committee has approved the allocation of 490.9 crore equity shares of the company to the anchor investors.

''The Capital Raising Committee of the Board of Directors of the company at its meeting held on April 16, 2024 in consultation with the Book Running Lead Managers to the issue has finalised allocation of 4,90,90,90,908 equity shares to anchor investors at anchor investor allocation price of Rs 11 per equity share (including share premium of Rs 1 per equity share),'' the company said in a BSE filing.

The anchor book received interest from a large number of leading global as well as domestic investors, all at the top end of the price band, that is Rs 11 per equity share.

Cash-strapped Vodafone Idea has announced Rs 18,000 crore follow on public offer at a price band of Rs 10-11 per share, marking the biggest FPO in the country.

The mega fundraise by VIL, which comes close on the heels of a Rs 2,075 crore fund infusion by the Aditya Birla Group via a preferential share issue earlier this month, is significant as it would give the ailing telco the firepower to improve competitive positioning in the Indian market, where it currently trails behind larger rivals Reliance Jio and Bharti Airtel by a wide margin.

The funds would also help VIL ready a war chest for the much-delayed 5G rollout and strengthening 4G services.

VIL has been haemorrhaging subscribers month after month and fighting a desperate battle for survival saddled with a debt of Rs 2.1 lakh crore and quarterly losses.

VIL's follow-on offer will open to public investors on April 18 and close on April 22. The book running lead managers to the FPO are Axis Capital Limited, Jefferies India Private Limited and SBI Capital Markets Limited.

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