- Home
- News
- Vodafone Idea Sets Floor And Cap Prices For Fpo Amid Market Speculation
Vodafone Idea Sets Floor and Cap Prices for FPO Amid Market Speculation
Indian Market
by Tanushree JaiswalLast Updated: Apr 12, 2024 - 02:59 pm629 Views
In a major development, Vodafone Idea Ltd. has revealed the floor price and cap price, alongside the lot size, for its upcoming follow-on public offering (FPO). The telecom giant witnessed a decrease of more than 3.25% during early trading on Wednesday, settling at ₹12.51, thus holding a market capitalization exceeding ₹61,000 crore.
The capital raising committee of Vodafone Idea, in a meeting held on Friday, March 12, 2024, authorized and recommended a floor price of ₹10 per equity share and a cap price of ₹11 per equity share for the FPO, as stated in the company's exchange filing. Moreover, it was announced that the minimum bid lot would consist of 1,298 equity shares, with multiples of the same thereafter. At the floor price, each lot would cost ₹12,980, whereas at the cap price, it would be priced at ₹14,278.
Additionally, a meeting of the capital raising committee is set for March 16, 2024, to finalize the allocation of equity shares to the successful anchor investors and to decide the anchor investor allocation price.
Vodafone Idea had prior approval for the commencement of its FPO starting from Wednesday, March 14, and concluding on Sunday, March 18. The telecom behemoth plans to raise a total of ₹18,000 crores through its secondary stake sale, as per another exchange filing. Noteworthy, the company also okayed the red herring prospectus (RHP) for the offer.
The FPO, scheduled from March 14 to March 18, will be accessible for anchor investors on March 16, according to the notification to the BSE. It's important to note that the higher end of the price band of ₹11 is set at a discount of approximately 26% compared to the recently approved preferential issue price to the promoter entity Oriana Investments Pte. Ltd, at ₹14.87 per share.
Additionally, roadshows and interactive sessions with investors and analysts are being scheduled across various Indian cities from the week beginning March 15 until the bid closing date.
Vodafone Idea's shareholders approved a fundraising initiative worth ₹45,000 crores, including a ₹20,000 crore equity-based capital infusion from existing investors. The telco has also sanctioned allotting shares worth ₹2,075 crore to Oriana Investments on a preferential basis. The objective is to complete the fundraising process by the end of June.
To Summarize
Despite the announcement of the fundraise, Vodafone Idea's shares saw a decline of more than 4% during early trade on Friday. Struggling with a significant debt of ₹2.1 trillion, the telecom giant faces challenges, including erosion in subscriber base and revenue, among stiff competition in the telecom sector.
Share Market Today
Indices Name | Price | Price Change (% change) |
---|---|---|
7624.00 | -130.5 (-1.68%) | |
CAC 40 | 7962.82 | -71.37 (-0.89%) |
DAX | 17843.98 | -145.64 (-0.81%) |
Dow Jones | 37735.11 | -248.13 (-0.65%) |
FTSE 100 | 7855.11 | -110.42 (-1.39%) |
Hang Seng | 16248.97 | -351.49 (-2.12%) |
US Tech Composite | 15890.02 | -290.07 (-1.79%) |
Nikkei 225 | 38471.20 | -761.6 (-1.94%) |
5061.82 | -61.59 (-1.2%) | |
Gift Nifty | 22206.00 | -44 (-0.2%) |
Shanghai Composite | 3007.64 | -49.74 (-1.63%) |
Taiwan Weighted | 19901.96 | -547.81 (-2.68%) |
US 30 | 37977.70 | 235.7 (0.62%) |
Invest Now
How do you rate this article?
Submit Rating
View All
Start Investingin5 mins*
Rs. 20 Flat Per Order| 0% Brokerage
Invest Now
About the Author
Tanushree Jaiswal
Tanushreeis a seasoned professional with 6 years of experience in the Fintech and Edtech industry.
Disclaimer
Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to
By proceeding, you agree to the
Latest News
Teerth Gopicon IPO Debut with 12.6% Premium Opening at ₹125, Setting a Positive Tone
Teerth Gopicon IPO were floated for ₹125 on the NSE SME platform on April 16, representing a 12.6% premium over the issue price of ₹111.Gains were broadly consistent with the gray market, where the share was trading at ₹127 before of the IPO. The term "grey market" refers to unofficial, over-the-counter trading in securities before they are listed on exchanges.
- Apr 16, 2024Read More
Jefferies' Prediction for Bharati Hexacom: 'Double Your Money in a Year'
Jefferies is bullish on Bharti Hexacom, a Bharti Airtel group company, citing its strong growth prospects and healthy margin expansion.
- Apr 16, 2024Read More
Jio Financial Services Up 5% After BlackRock Joint Venture Announcement
Jio Financial Services Ltd witnessed a sharp rise in today's trading session following its announcement of a collaboration with BlackRock, a non-banking financial company (NBFC). The stock surged by 4.90 percent, reaching a day high of ₹371.75.
- Apr 16, 2024Read More
View More
View More