The Rs 18,000-crore follow-on public offer (FPO) from Vodafone Idea got off to a modest start with investors bidding for 26 per cent of the shares on offer.

The fundraising is crucial for the beleaguered telco in upping its game both in 4G and 5G services, while the focus will be on equity dilution after the float which is the country’s largest after that of Yes Bank in 2020. The private sector lender had raised Rs 15,000 crore through an FPO in 2020.

The promoters comprising the Aditya Birla group and Vodafone PLC currently hold 48.91 per cent of Vodafone’s equity according to the stock exchange data. For the quarter ended March 31, 2024, the Union government, which is classified as a public shareholder, had a stake of 32.19 per cent.

According to the red herring prospectus of VIL, the Vodafone group holds a little over 31 per cent of VIL, while the Aditya Birla group has a stake of nearly 17.50 per cent.

Although the prospectus of VIL did not disclose the shareholding structure after the FPO, analysts estimated that the promoters’ stake would decline to around 37 per cent. Sources, however, said the details will be known after the FPO closes.

Of the 1,260 crore shares on offer, 331.24 crore shares were subscribed on Thursday.