Telecom company selling shares at ₹12, took help from Axis and JefferiesTelecom company selling shares at ₹12, took help from Axis and Jefferies! On April 2 itself, Vodafone-Idea got shareholder approval to raise ₹20,000 crore through shares or equity-linked instruments. At the same time, a meeting of the board of directors of this company is also going to be held on 6th April.
Vodafone-Idea has appointed the investment banking units of Axis Bank and Jefferies Financial Group Inc for its $2.4 billion (₹20,000 crore) share sale. For this the company has also held talks with other investment bankers. Let us tell you that this telecom company is going to raise money through Follow-on Public Offer i.e. FPO.
According to ET report, the FPO is being considered to be launched at a price of around Rs 12 per share. The company’s share price on Thursday was Rs 13.36. However, the share price may change. A Vodafone-Idea representative did not respond to an email seeking comment, while Axis Bank and Jefferies spokespersons declined to comment.
On April 2 itself, Vodafone-Idea got shareholder approval to raise ₹20,000 crore through shares or equity-linked instruments. At the same time, the meeting of the board of directors of this company is also going to be held on 6th April. The meeting will be held to decide on the proposal to issue equity shares or convertible securities on preferential basis.
The debt-laden company is working on a plan to raise Rs 45,000 crore through equity and debt to match the services offered by rivals Reliance Jio and Bharti Airtel and prevent long-term customer exodus . The company needs capital for 5G implementation and strengthening 4G services. Let us tell you that Vodafone Idea has a debt of Rs 2.1 lakh crore. The company is not recovering from quarterly losses and the number of customers is also declining.