Vodafone Idea Closes Anchor Investor Allocation, Raises ₹5,400 Crore Ahead Of FPO

Vodafone Idea Limited, a prominent player in India's telecommunications sector, has closed the allocation of equity shares to anchor investors ahead of its forthcoming further public offer (FPO), the company on Wednesday announced through an exchange filing.

As per the regulatory filing, the telecom giant has raised approximately Rs 5,400 crore from a diverse array of leading global and domestic investors.

Anchor Investor Allocation Details

The Capital Raising Committee of Vodafone Idea, in collaboration with the Book Running Lead Managers to the Issue, has finalised the allocation of 490.9 crore Equity Shares to 74 funds. The allocation was made at an Anchor Investor allocation price of Rs 11 per Equity Share, which includes a share premium of Rs 1 per Equity Share, the company added in the regulatory filing.

Moreover, all subscriptions were made at the upper end of the price band.

Major Anchor Investors

A wide spectrum of entities across various sectors participated in the anchor book allocation.

Some of the major participants include GQG Partners Emerging Markets Equity Fund, Australiansuper, Fidelity Securities Fund, Motilal Oswal Midcap Fund, and several others.

Furthermore, domestic investors such as Motilal Oswal Mutual Fund, HDFC Mutual Fund, SBI General Insurance, and Quant Mutual Fund were also allocated shares in the anchor round.

A portion of the anchor allocation, amounting to 16.2 per cent of the total, was allotted for domestic mutual funds. This encompassed a range of schemes managed by prominent names in the Indian mutual fund industry, including HDFC Mutual Fund, Motilal Oswal Mutual Fund, and Baroda BNP Paribas Mutual Fund, among others.

Importance of Mutual Fund Participation

A portion of the anchor allocation, amounting to 16.2 per cent of the total, was alloted for domestic mutual funds. This encompassed a range of schemes managed by prominent names in the Indian mutual fund industry, including HDFC Mutual Fund, Motilal Oswal Mutual Fund, and Baroda BNP Paribas Mutual Fund, among others.

The Rs 18,000 crore FPO of Vodafone Idea is set to open for public subscription on April 18 and conclude on April 22.

The funds raised will facilitate the much-needed improvement in 4G services, support for the delayed 5G rollout, and payment of vendor dues.

Earlier this month, the Vodafone Idea Board approved raising Rs 2,075 crore from promoter Aditya Birla Group. Moreover, the company outlined plans to raise a total of Rs 45,000 crore through a mix of equity and debt.