GQG, SBI MF eye Rs 6,600 crore investments in Vodafone Idea’s Rs 18,000 crore FPO: Report

India-born Rajiv Jain’s investment firm GQG Partners and State Bank of India Mutual Fund are considering investing up to $800 million (Rs 6,600 crore) in the upcoming Rs 18,000 crore follow-on public offer (FPO) of cash-strapped Vodafone Idea, a Reuters report said quoting two people familiar with the matter.

The US-based GQG is planning to invest about $500 million, while SBI Mutual Fund is considering an investment of $200-300 million in the FPO, the report said further.

Cash-strapped Vodafone Idea’s Board of Directors on Friday approved a resolution for a public offering of its equity shares worth Rs 18,000 crore. The follow-on public offer (FPO) will open on April 18, Thursday and close on April 22, Monday, a company filing said. The anchor investor bid will open on April 16.

On Thursday, the telecom operator declared the price band for the public issue at Rs 10-11 per share. The floor price for the FPO has been set at Rs 10 per share while the cap price would be Rs 11. Investors have to apply for a minimum bid lot of 1,298 shares and its multiples thereafter.

The company’s board had on Thursday passed a resolution for approving, adopting and filing of the red herring prospectus dated (the RHP) with the Gujarat Registrar of Companies (RoC) in connection with the further public offering of equity shares

The company’s board had on Thursday passed a resolution for approving, adopting and filing of the red herring prospectus dated (the RHP) with the Gujarat Registrar of Companies (RoC) in connection with the further public offering of equity shares.

Debt-saddled Vodafone Idea was formed in 2018 when Vodafone Group merged its India business with local billionaire Idea Cellular in a $23 billion deal.

The company, in which Vodafone has more than 25%, is India’s third biggest operator after Reliance Jio and Bharti Airtel , who have taken away its market share in recent years.

GQG and SBI Mutual Fund are considering investments under the institutional quota of what will be India’s biggest secondary offering. A final decision on their investments has not been reached.

Vodafone Idea plans to use the funds to expand its 4G network, set up 5G networks, pay taxes and dues, it said in it said in its regulatory filing this week.

Vodafone Idea shares were trading at Rs 13 on the NSE on Friday, up by Rs 0.05 or 0.39%. After hitting a low of Rs 6 in April last year, the stock has made steady gains jumping to its 52-week high of Rs 18.40. Its one-year returns stand at 108%.

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