Vodafone Idea (Vi) is gearing up for a significant financial maneuver, aiming to launch a follow-on public offer (FPO) in the coming days to raise an estimated Rs 18,000-20,000 crore, sources reported to Moneycontrol. This strategic move by the debt-heavy telecom giant is poised to be one of India’s most substantial offerings of its kind.

The company has enlisted renowned financial entities including Jefferies, SBI Caps, and Axis Capital as lead managers for the FPO. Notably, despite the magnitude of the offering, sources disclosed that none of the banks are underwriting the issue.

Vi’s ambitious FPO aims to alleviate its financial burdens amidst a tumultuous telecom landscape characterized by fierce competition and regulatory complexities. With a substantial debt burden and operational deficits, Vi has been grappling with challenges that have led to a decline in its subscriber base and market share.

The FPO’s significance is underscored by the involvement of anchor investors, both domestic and foreign institutional investors, signaling early support for the initiative. Moreover, sources revealed that the Government of India, holding a significant 33% stake in the company, is backing the fundraising effort. It’s reported that certain investors engaged with the government prior to committing to the FPO.

This move comes in the wake of intense market dynamics and follows Vi’s recent board decision to sanction the allocation of shares valued at Rs 2,075 crore to Oriana Investments Pte Ltd, a subsidiary of the Aditya Birla Group, through preferential allotment.

The proceeds from the FPO are anticipated to inject much-needed liquidity into Vi and strengthen its financial position. This is especially crucial given the company’s recent decline in its subscriber base, as highlighted by Telecom Regulatory Authority of India (TRAI) data.