Shares of Vodafone Idea fell nearly 3 percent at open on the NSE on April 16, a day after the company announced an FPO set to be launched on April 18. The stock gained around 1 percent on April 15. At 9:20 am, April 16, the stock was trading at Rs 12.75.

A follow-on offering is an issuance of additional shares made by a company after an initial public offering (IPO). Vodafone Idea’s FPO will open for subscription on April 18 and close on April 22, 2024 with the price band of the issue fixed at Rs 10-11 per share. The company aims to raise Rs 18,000 crore from the FPO.

The debt-ridden teleco plans to use Rs 12,750 crore from the proceeds to purchase equipment for the expansion of its network infrastructure by setting up new 4G and 5G sites as well as expand their existing capacities. Additionally, around Rs 2,175.31 crore will be used to for deferred payments for spectrum to the Department of Telecom and GST, and the remaining funds will be used for corporate purposes.

As of December 31, 2023, Vodafone Idea’s total debt was Rs 2.15 lakh crore. The company reported a net loss of Rs 6,985.9 crore for the December quarter, down from Rs 7,990 crore in the year-ago period. Revenue for the same period was Rs 10,673.1 crore, up 0.49 percent from the previous fiscal. EBITDA grew to 40.8 percent in the quarter compared to 39.4 percent in the previous fiscal.