Vodafone Idea Approves Resolution To File RHP For Rs 18,000-Crore FPO, Shares Fall

Vodafone Idea Ltd. has passed a resolution to file a red herring prospectus for its upcoming follow-on public offer to raise up to Rs 18,000 crore, according to an exchange filing dated April 11. In a board meeting on Thursday, the company agreed to approve, adopt and file the document with the Registrar of Companies, Gujarat, the statement read.

During the meeting, the board inter-alia passed resolutions for the following:

• Approving the bid/offer opening date to be April 18.

• Approving the bid/offer closing date to be April 22.

• Approving the anchor investor bid/offer period to be April 16.

In a separate filing on Friday, Vodafone Idea said it has approved a price band of Rs 10-11 for its upcoming offer. This represents a discount of 15% to 22.7% from the Wednesday's close of Rs 12.93 per share.

NDTV Profit previously reported that the company is planning to launch a follow-on public offering next week to raise as much as Rs 20,000 crore, according to people aware of the development.

The cash-strapped telecom operator has finalised anchor investors, the people said without providing the further details regarding the anchor investors. The investors likely involve private equity funds. The Aditya Birla Group’s telecom operator is planning to use the funds raised through FPOs largely for infrastructure investments, the people added.

The capital raising committee is scheduled to be held on Friday to consider and approve, among other things, the price band and discount, if any, as permitted under the provisions of the SEBI ICDR Regulations, the filing added.