Vodafone Idea‘s ₹18,000 crore follow-on public offering (FPO) has drawn the attention of major foreign and domestic institutional investors. According to a Moneycontrol report, GQG Partners, Fidelity, HDFC Mutual Fund, Motilal Oswal Mutual Fund, and Quant Mutual Fund are ready to participate in the FPO.

What Happened: These investors are expected to participate in the anchor book allocation of the FPO, marking it as the largest share sale by an Indian company to date. The anchor book allocation, which opens a day before the launch of the share sale, serves as an indicator of institutional investor interest. The investors may also bid for shares in the main book of the FPO, which opens for subscription on April 18.

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The Vodafone Idea FPO will open for subscription on April 18 and close on April 22. The company has set a price band of ₹10-11 per share for the FPO. The minimum bid lot for subscription has been fixed at 1,298 equity shares.

The troubled telco plans to use ₹12,750 crore of the total FPO proceeds for purchasing equipment for the expansion of its network infrastructure. This includes setting up new 4G sites, expanding the capacity of existing 4G sites, and setting up new 5G sites. Out of the ₹12,750 crore allocated for network expansion, the telco will spend ₹5,720 crore on setting up its 5G network.

Price Action: Vodafone share price was down 2.66% to trade at ₹12.80 at the time writing on Tuesday.

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