Vodafone Idea's FPO Opens Today: Check Price Band, GMP, And Other Key Details

New Delhi: Vodafone Idea's (VI) Follow-on Public Offer (FPO) has garnered attention from investors as it opens for subscription today, April 18, 2024. Through the much-touted FPO, the company is aiming to raise Rs 18,000 crore. Here are the details of the FPO opening today.

Vodafone Idea FPO: Closing Date

The Follow-on-Public Offer is open until April 22. (Also Read:  Bank Holiday Alert: Financial Institutions To Close On April 19 In THESE Cities, Know Why)

Vodafone Idea FPO: Price Band

The offers shares in the price band of Rs 10 to Rs 11 per share. (Also Read: Viral Video: Zomato Boy Delivering Food On Harley-Davidson Surfaces Online -- Watch)

Vodafone Idea FPO: Grey Market Premium (GMP)

The Grey Market Premium (GMP) for VI's FPO stands at Rs 1.50.

Vodafone Idea Share Price

While writing the article, VI witnessed a surge in its stock price by 4.3 percent, reaching Rs 13.48. The stock fluctuated between Rs 13.48 and Rs 13.08 on the BSE.

Response From Investors

The FPO gains a robust response from anchor investors, including GQG Partners. 

Utilisation Of Funds

This is the question on which many things depend. That's why investors are also excited to know about the same. As outlined in the red herring prospectus (RHP), VI plans to utilize the net proceeds from the FPO for various purposes.

This includes investing Rs 12,750 crore in expanding its network infrastructure, such as establishing new 4G and 5G sites, and augmenting capacity.

Additionally, Rs 2,175 crore will go towards settling certain deferred payments for spectrum to the Department of Telecommunications (DoT) and related GST. The remaining funds will be allocated for general corporate purposes.

Government Stake

The Indian government currently holds a 32.19 percent stake in Vodafone Idea, making it the largest stakeholder. This stake was acquired in 2022 when VI converted its unpaid debt to the government into a 36 percent stake.