Vodafone Idea Limited (NSEI:IDEA) is preparing to raise INR 200,000 million from the markets through a follow-on public offer (FPO) likely as early as next week, said three people aware of the discussions the cash-strapped company was having with banks. It is learnt to have appointed Axis Bank, Jeffries Group and State Bank of India as lead bankers for managing the share sale. Two of the people cited above said that a price band may be decided by early next week, which is likely to be at a discount to the current price.

On April 4, 2024, Vodafone Idea's shares on BSE closed 1.4% lower at INR 13.36 apiece. One of the persons cited above said that long-only investors are likely to come in as anchor investors in the follow-on offer. "The FPO will be followed by raising a larger level of debt from banks, which has long been contingent on their fundraise through equity," the third person said.

The three spoke on condition of anonymity, as they're not permitted to speak to the media. Queries to Vodafone Idea, Axis Bank and SBI did not elicit a response till press time. Jeffries Financial Group declined to comment.

A fundraise through the FPO will be the culmination of many attempts made by the loss-making telecom services provider that had first announced its intention to raise capital back in September 2020.