What is an FPO?
An FPO (Follow-on Public Offer) is one in which an established company already listed on the stock exchange(s) issues new shares either to existing shareholders or to new investors. Unlike an IPO, where a company offers its shares to the public for the first time to raise funds for business growth, an FPO is aimed at expanding the company’s equity base.
How is an FPO priced?
Issue price for an FPO is usually lower than the prevailing market price so that the company can bag more subscribers to its issue.
About Company’s Business:
Through their pan India network, they provide voice, data, enterprise, and other value-added services, including short messaging services and digital services across 2G, 3G, and 4G technologies. They also offer connectivity services to enterprise customers. They hold active licenses for national long distance, international long distance, internet service provider, and registration for infrastructure provider (IP-1) services. They carry inter-service area voice traffic and incoming and outgoing international voice traffic on their network, facilitated through interconnections with their active licenses. Their promoters are part of the Aditya Birla group and the Vodafone group.
About the Industry:
The mobile telecommunications industry plays a crucial role in the Indian economy, contributing significantly to its economic growth and GDP. The industry is segmented into 22 service areas, comprising three metro service areas and 19 other service areas. These additional service areas are further classified into circles based on factors such as affluence, infrastructure development, and revenue potential within each area. Moreover, mobile broadband is the primary means of accessing the internet in India, and there has been a steady increase in smartphone penetration across the country.
Key Financial Information (â‚ą in million):
| Particulars | As at and for the nine months ended December 31, 2023 | As at and for the nine months ended December 31, 2022 | As at and for the Financial Year ended March 31, 2023 | As at and for the Financial Year ended March 31, 2022 | As at and for the Financial Year ended March 31, 2021 |
|---|---|---|---|---|---|
| Equity Share capital | 486,797 | 321,188 | 486,797 | 321,188 | 287,354 |
| Net Worth | (979,319) | (847,096) | (743,591) | (619,648) | (382,280) |
| Revenue from operations | 320,449 | 316,453 | 421,772 | 385,155 | 419,522 |
| Profit/(Loss) after tax | (235,638) | (231,870) | (293,011) | (282,454) | (442,331) |
| Basic Earnings/ (Loss) per Equity Share | (4.84) | (7.16) | (8.43) | (9.83) | (15.40) |
| Diluted Earnings / (Loss) per Equity Share | (4.84) | (7.16) | (8.43) | (9.83) | (15.40) |
| Net Asset Value per Equity Share | (20.12) | (26.17) | (21.40) | (21.56) | (13.30) |
| Total borrowings | 2,034,257 | 2,111,308 | 2,015,860 | 1,909,177 | 1,803,103 |
Objective of the Issue:
-
Purchase of equipment for the expansion of our network infrastructure by:
(a) setting up new 4G sites
(b) expanding the capacity of existing 4G Sites and new 4G sites
(c) setting up new 5G sites -
Payment of certain deferred payments for spectrum to the DoT and the GST thereon
-
General corporate purposes.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Thursday, April 18, 2024 |
| Close Date | Monday, April 22, 2024 |
| Issue Size | â‚ą18,000.00 Crores |
| Price | â‚ą10 to â‚ą11 per share |
| Lot Size | 1298 Shares |
| Basis of Allotment | Tuesday, April 23, 2024 |
| Initiation of Refunds | Wednesday, April 24, 2024 |
| Credit of Shares to Demat | Wednesday, April 24, 2024 |
| Listing Date | Thursday, April 25, 2024 |
How to apply for this FPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
Do let us know your thoughts on this FPO.