Vodafone Idea slips over 4.50% a day after telecom firm announces FPO details

Vodafone Idea slid by over 4.50 per cent on BSE on Tuesday (April 16, 2024) a day after the telecom company announced that its FPO was set to be launched on April 18.

The stock that began the day at Rs 12.90 slipped to the day's low of Rs 12.56, a 4.56 per cent fall from its previous close of Rs 13.16. 

The Vodafone Idea stock was trading lower by 3.27 per cent, or Rs 0.43, at Rs 12.73 at 11:10 am on Tuesday.

Vodafone Idea FPO details

The FPO of the telecom company will open for subscription on April 18 and will close on April 22, as per Vodafone Idea.

The company aims to raise Rs 18,000 crore from its FPO.

The price band for the issue is Rs 10-11 per share.

Of the total FPO proceeds, Vodafone Idea wants to use Rs 12,750 crore for the purchase of equipment for the expansion of its network infrastructure by setting up new 4G sites; expanding the capacity of existing 4G sites, and setting up new 5G sites.

The telecom company is targeting to set Rs 2,175.31 crore from the FPO proceeds for deferred payments for spectrum to the Department of Telecom and the GST.

It will use the rest of the funds for general corporate purposes.