New Delhi, Apr 23: Shares of Vodafone Idea Ltd on Tuesday climbed nearly 12 per cent, a day after the telecom operator raised Rs 18,000 crore in India’s largest ever follow-on offering (FPO).
The stock jumped 11.64 per cent to Rs 14.39 on the BSE. During the day, it zoomed 14.42 per cent to Rs 14.75.
At the NSE, it climbed 11.24 per cent to Rs 14.35 apiece. In intra-day, the stock jumped 14.34 per cent to Rs 14.75.
The company’s market capitalisation (mcap) also rose by Rs 7,517.98 crore to Rs 72,122.42 crore.
In volume terms, 3,644.64 lakh shares of the company were traded at the BSE and over 21,474.84 lakh shares at the NSE during the day.
At the close of the offering on Monday, as many as 8,011.29 crore shares were sought, 6.99 times of the issue size.
Together with Rs 5,400 crore collected from anchor investors by selling 490 crore shares prior to the market share, it raised the targeted Rs 18,000 crore.
The FPO is the largest ever. Prior to this, the largest FPO in the Indian market was a Rs 15,000 crore share sale by YES Bank in 2020.
The fundraise would give the ailing telco the firepower to improve its positioning in the Indian telecom market, where it currently trails larger rivals such as Reliance Jio and Bharti Airtel, by a wide margin.
The funds will also help Vodafone Idea shore up finances for the much-delayed 5G roll-out and strengthening 4G services, and payment of vendor dues.
Vodafone Idea’s (VIL) board has fixed the FPO offer price at Rs 11 per equity share, according to a regulatory filing. (PTI)
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