Vodafone Idea Announces Rs 18,000 Crore FPO, Floor Price Revealed, Shares Plunge; Details Inside

Vodafone Idea, the Indian telecom giant announces its Rs 18,000 crore follow-on public offer (FPO), slated to open for subscription on April 18. The telecom titan made the announcement today, April 12, unveiling a strategic plan to bolster its financial standing.

With the floor price fixed at Rs 10 a share and the cap set at Rs 11, investors are eyeing this opportunity which marks one of the largest offerings of its kind in India. The FPO is scheduled to close on April 22, with anchor bids set to be approved on April 16.

This move follows earlier reports hinting at Vodafone Idea's intentions to raise Rs 18,000-20,000 crore through an FPO. The company, burdened by debt, has enlisted renowned entities including Jefferies, SBI Caps, and Axis Capital as lead managers for the FPO, underlining its commitment to financial revival.

Investors can bid for a minimum lot of 1,298 equity shares, with the minimum application amount standing at Rs 14,278 for one lot at the upper end of the price band. Subsequent bids can be made in multiples of 1,298 equity shares.

The FPO marks a crucial step forward after Vodafone Idea's board approval on February 27 to raise up to Rs 20,000 crore via equity. Additionally, the recent issuance of preferential shares to Oriana Investments Pte Ltd, a promoter entity belonging to the Aditya Birla Group, raised Rs 2,075 crore at Rs 14.87 per share, signalling investor confidence and surpassing the FPO floor price by 40%.

Beyond equity offerings, the telecom company is reportedly in discussions with banks to secure debt funding, potentially raising the total fund accumulation to an impressive Rs 45,000 crore, combining equity and debt.

However, amid these ambitious financial manoeuvres, challenges loom large. A recent note from brokerage CLSA paints a cautious picture, projecting a potential fall in Vodafone Idea's shares to Rs 5 due to a loss of 17 million subscribers over the past year. Moreover, impending fiscal pressures in 2026, including substantial spectrum and AGR payments, could further strain the company's financial stability unless mitigated by government intervention.

Vodafone Idea's shares have witnessed a remarkable surge, doubling over the past year, albeit with a recent correction of 30% from its peak. In today's trading session, the stock grapples with a 5% decline, trading at Rs 12.28 per share on the National Stock Exchange (NSE), amid its inclusion in the F&O ban list, signalling cautious investor sentiment.