Vodafone Idea share price: Vi shares surge 12% after successful Rs 18,000 crore FPO

KOLKATA: Vodafone Idea (Vi) surged nearly 12 per cent on the BSE on Tuesday, a day after successfully closing its ₹18,000 crore follow-on public offering (FPO), raising investors’ hopes for the cash-strapped telecom company.

The FPO is expected to be followed by a ₹25,000-crore debt issuance, a ₹45,000-crore fundraising exercise aimed at helping Vi restore its financial health and strengthen competition from larger and more profitable rivals Reliance Jio and Bharti Airtel. It is expected to help achieve this.

Previously, Vi’s FPO, the largest in India, was fully subscribed in three days due to strong demand from global institutional investors such as GQG Partners, Capital Group, and Fidelity Investments.

Vi’s share price rose 11.64% to ₹14.39 per share, significantly outperforming the common benchmark index.

The telecom JV between Britain’s Vodafone Plc and India’s Aditya Birla Group plans to use more than 70% of the targeted funds to strengthen 4G operations and roll out 5G networks.

Earlier, Vi’s board approved the issuance of preference shares to raise Rs 2,075 crore from Aditya Birla Group (ABG) entities, paving the way for a wider fundraising program that is critical for the company’s turnaround. Vi will issue shares to Oriana Investments Pte Ltd, an ABG entity, at ₹14.87 per share.