NAME: Vodafone Idea’s $2.15 billion FPO
LAW FIRM: AZB & Partners, Cyril Amarchand Mangaldas, S&R Associates, Sidley Austin
JURISDICTION: India
PRACTICE AREAS: Capital markets
INDUSTRY SECTORS: Technology and telecommunications
Vodafone Idea’s $2.15 billion further public offering (FPO) is our deal of the month for May.
Indian mobile network operator Vodafone Idea has successfully completed its $2.15 billion FPO, marking the country’s largest ever FPO and the third largest offering of public equity shares in India.
The FPO attracted strong demand from global institutional investors, with the overall book being subscribed seven times and the institutional book being subscribed 19 times. The QIB portion of the FPO was subscribed 93 percent, with most bids coming from foreign portfolio investors.
The Aditya Birla Group, promoter of the FPO and a parent organisation of Vodafone Group, has stated the FPO will mark the beginning of Vodafone Idea 2.0 and a “smart turnaround” for the company. Proceeds will be used to improve performance and operational efficiency, with plans to expand existing 4G sites and set up new 5G sites. The FPO is expected to help the company remain operational in the coming years, especially considering its previous financial challenges.
Cyril Amarchand Mangaldas acted for Vodafone Idea with a team led by capital markets practice head Yash Ashar.
S&R Associates acted for Vodafone Group. The team was led by partners Rajat Sethi, Lakshmi Pradeep and Meher Mehta.
AZB & Partners and Sidley Austin acted for the bookrunners. The Sidley team was led by partner Manoj Bhargava and included partners Daniel O’Shea, Robert Kreitman, Nicholas Brown and Carla Teodoro.