In a strategic move to fortify its position in India’s competitive telecom sector, Vodafone Idea, the country’s third-largest telco, is gearing up to raise Rs 18,000 crore through a follow-on public offering (FPO). The company aims to utilize this capital infusion for a comprehensive network expansion, including the establishment of new 5G sites, bolstering its 4G network, and addressing deferred spectrum payments.

According to the red herring prospectus (RHP) filed by Vodafone Idea on Friday, the FPO is set to open for subscription on April 18 and will conclude on April 22. With a price band fixed at Rs 10-11 per share, the offering presents an opportunity for investors to participate in the telecom giant’s growth trajectory. The minimum bid lot for subscription stands at 1,298 equity shares.

A significant portion of the FPO proceeds, totaling Rs 12,750 crore, is earmarked for enhancing network infrastructure. This includes the procurement of equipment for the expansion of existing 4G sites and the establishment of new 5G sites. With an aggregate spectrum holding of 8,005.2 MHz as of December 31, 2023, Vodafone Idea is poised to leverage its spectrum assets to deploy advanced technologies across priority service areas.

The telco plans to allocate Rs 5,720 crore from the FPO funds towards setting up its 5G network. In the fiscal year 2025, it aims to deploy 10,000 new 5G sites with a projected expenditure of Rs 2,600 crore, followed by an additional 12,000 sites in FY26, with an allocated spend of Rs 3,120 crore.

Additionally, Vodafone Idea intends to utilize Rs 2,175.31 crore from the FPO proceeds to address deferred payments for spectrum to the Department of Telecom and GST obligations. These payments, spread over 20 years, constitute a crucial aspect of the telco’s financial commitments.

The remaining portion of the FPO funds will be allocated towards general corporate purposes, encompassing working capital requirements, marketing endeavors, strategic initiatives, and potential investments in subsidiaries and associate companies.

With this ambitious FPO, Vodafone Idea aims to strengthen its market presence and enhance its technological capabilities to meet the evolving demands of Indian consumers. As the telecom landscape continues to evolve, strategic investments in network infrastructure and spectrum assets are expected to position Vodafone Idea for sustainable growth in the dynamic Indian telecom market.