Vodafone Idea’s board greenlights Rs 18,000 crore FPO, opening April 18, with one-year returns at 108%.
Vodafone Idea intends to utilize Rs 18,000 crore
Vodafone Idea intends to utilize Rs 18,000 crore from FPO for 5G, 4G network expansion, and spectrum payments, as per RHP.The Vodafone Idea FPO subscription opens April 18, closes April 22. Price band set at Rs 10-11 per share, minimum bid lot 1,298 shares.
Network expansion allocation
Out of FPO proceeds, Rs 12,750 crore designated for equipment purchase to expand network infrastructure, including new 4G and 5G sites, per RHP. “Rs 6,620 crore earmarked for FY25 and Rs 6,130 for FY26.
As of December 31, 2023, our spectrum holdings total 8,005.2 MHz across various bands. Of this, 7,975.2 MHz is liberalized and usable for 4G and 5G, including mid-band 5G in 17 areas and mmWave 5G in 16 areas,” stated the telco. As of December 31, 2023, the telco operates 3,79,815 existing 4G sites.
Over nine months till December 31, 2023, and in fiscal years 2023, 2022, and 2021, we’ve established and enhanced capacity for 1,00,355 4G sites, with a total capex of Rs 5,285.7 crore,” it elaborated.
5G capital expenditure
Out of the allocated Rs 12,750 crore for network expansion, Rs 5,720 crore will be dedicated to building the 5G network.
In FY25, Rs 2,600 crore will be spent to establish 10,000 new 5G sites, and in FY26, Rs 3,120 crore will be invested in 12,000 5G sites.”
Deferred spectrum payments
From FPO proceeds, Vodafone Idea allocates Rs 2,175.31 crore for deferred spectrum payments to the Department of Telecom and GST.
Of this, Rs 2,145.88 crore is slated for FY25.
The telco chose equal installments over 20 years for spectrum acquired in 2021 and 2022 auctions, totaling Rs 2,175.31 crore annually, including GST.”
General corporate purposes
Remaining FPO proceeds will fund general corporate needs: working capital, marketing, strategic initiatives, investments in subsidiaries, meeting business exigencies, and paying debts.
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