Mumbai: Vodafone Idea, India's third largest telecom service provider, has announced a move to raise funds through a Rs 18,000 crore follow-on public offer (FPO). This FPO comes with a price band of Rs 10-11 per share and is scheduled to take place from April 18 to 22, with anchor investors getting the opportunity to participate from April 16. 

The decision to offer shares at a discounted price compared to recent preferential issue prices reflects the company's efforts to attract investors amidst challenging market conditions. Despite these efforts, Vodafone Idea's shares have faced downward pressure, declining over 4% during early trade on Friday.

The telecom industry in India is fiercely competitive, with companies like Bharti Airtel and Reliance Jio dominating the market. Vodafone Idea has been struggling to keep up, facing challenges such as erosion in subscriber base and revenue, compounded by a debt burden of Rs 2.1 trillion. 

The fundraising through the FPO is part of a larger Rs 45,000 crore fundraising initiative approved by Vodafone Idea's shareholders, which includes equity-based capital infusion from existing investors. Additionally, the company plans to raise debt to complete the fundraising by the end of June.

The success of the FPO and the company's ability to turn around its fortunes will depend on various factors, including investor sentiment and market dynamics in the coming months.

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