Cyril Amarchand Mangaldas Advised Vodafone Idea Ltd. On INR 18,000 Cr. Further Public Offering Of 16,363,636,363 Equity Shares
Cyril Amarchand Mangaldas Advised Vodafone Idea Ltd. On INR 18,000 Cr. Further Public Offering Of 16,363,636,363 Equity Shares
Cyril Amarchand Mangaldas (CAM) provided legal counsel to Vodafone Idea Limited (the Company) in its further public offering of 16,363,636,363 equity shares amounting to INR 18,000 crore (the Offer). This offering was conducted under the fast-track route as per the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (SEBI ICDR Regulations). The Company stands as the third largest telecommunications service provider in India by subscriber base (Source: TRAI Subscription Report). As per the GSMA Intelligence Database, it ranks as the sixth largest cellular operator globally in terms of the number of subscribers in a single country of operations.
The transaction stands out as the largest successful further public offering and the third largest public offering of equity shares in India to date. Moreover, it signifies the inaugural further public offering by a telecommunications sector company.
Remarkably, the entire process, from inception to completion, was executed swiftly, with the offering being finalized in just 54 days from the date of the kick-off meeting.
The overwhelming response from investors underscored the robust demand for the offering, with participation levels exceeding expectations. Despite its substantial size, the Offer was oversubscribed over 6 times, with applications for equity shares totaling over INR 93,663 crores. Notably, qualified institutional buyers demonstrated a particularly strong interest, oversubscribing their category by over 19 times.
Furthermore, the transaction resulted in the addition of nine lakh shareholders to the Company's shareholder base, signifying an expansion of its investor community.
Notably, Vodafone Idea Limited achieved a significant milestone as the only company to have raised funds through various means, including an initial public offering, a qualified institutions placement, a rights issue, and now a further public offering, showcasing its diversified fundraising approach and investor confidence in its growth prospects.
Axis Capital Limited, Jefferies India Private Limited and SBI Capital Markets Limited acted as book running lead managers to the Offer.
The Capital Markets team at Cyril Amarchand Mangaldas provided advisory services for the transaction. Leading the transaction team were Yash Ashar, Partner & Head of Capital Markets, and Abhinav Kumar, Partner & Regional Head of Markets Practice (Western Region). They were supported by Akshay Singh Ralhi, Principal Associate; Jhalak Shah, Sanjana Ravjiani, and Harshvardhan Lahiri, Senior Associates; Adwait Deshmukh, Raksha Raina, Sangram Kokate, Tanishq Mohta, Zeb Burk, and Shivendra Mehndiratta, Associates.
The transaction team also received guidance from our Managing Partner, Cyril Shroff.
Other parties and advisors involved in the transaction included Axis Capital Limited, Jefferies India Private Limited, and SBI Capital Markets Limited, who acted as book running lead managers. Sidley Austin LLP served as the international legal counsel for the book running lead managers, while S&R Associates acted as Indian legal counsel for Vodafone Group. Link Intime India Private Limited acted as the registrar.
The transaction was signed on 29th February, 2024 and closed on 25th April 2024.
