The much-talked about Vodafone Idea fund raise could materialise with an FPO being launched in a week or two, CNBC Awaaz reported citing sources, sending share prices higher in mid-day trade on April 3.
Vodafone Idea is looking to raise around Rs 15-20,000 crore via a Follow On issue, and the board had already accord its approval in February, as it looks to infuse capital to finances the much-delayed 5G rollout and to strengthen its 4G services.
The telecom major is yet to respond to queries by CNBC Awaaz and the story will be updated soon with more details. Moneycontrol has not yet independently confirmed the development.
Moneycontrol had reported on March 1 that Vodafone Idea was in talks with investment banks to strike an efficient fund raise structure, one that would optimize various avenues including rights issue, preferential allotment, or a follow-on public offering. Without adequate funding, it is possible that the telecom player could lose customer base, and hence the intense market focus on the development, as it looks to boost average revenue per user (ARPU).
Shares of Vodafone Idea on April 3 traded 0.97 percent higher at Rs 13.57 apiece on BSE.
Meanwhile, the telecom company earlier today said that the shareholders have approved fund raise of Rs 20,000 crore, which could potentially unlock revenue opportunities for multinational telecom gear vendors such as Nokia and Ericsson.
The funds will allow the telecom major to expand its 4G network and rollout 5G services. Analysts suggest that these moves could help the company regain some of its competitive edge by offering a better experience to its users.
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