Vodafone Idea’s follow-on public offer (FPO) was subscribed 43 percent on Day 2, with investors picking 535.88 crore equity shares, subscription data from exchanges showed.

The country's third-largest telecom operator is offering 1,260 crore shares in Rs 18,000-crore FPO, the biggest such offer in the country, which is part of a broader plan to raise Rs 45,000 crore through debt and equity.

Qualified institutional investors led the pack, buying 0.88 times their allotted quota of shares, while non-institutional investors picked 0.56 times the portion reserved for them.

The part set aside for retail investors was subscribed 0.11 times, with 70.9 crore shares bought against the reserved 630 crore shares.

The Vodafone Idea FPO was subscribed 26 percent on the first day of bidding. The price band for the offer, which closes April 22, has been fixed at Rs 10-11 a share.

The debt-laden company mobilised Rs 5,400 crore from institutional investors through the anchor book at the upper price band on April 16. Citigroup, Goldman Sachs, Morgan Stanley, GQG Partners, Fidelity, UBS Fund Management, Redwheel Funds, HDFC Mutual Fund, Government Pension Fund Global, Carnelian Capital, Copthall Mauritius Investment and Societe Generale were among the anchor investors.

Insurance players such as SBI General Insurance Company and ICICI Prudential Life Insurance Company also invested in the telecom operator.

Vodafone Idea will spend Rs 12,750 crore of the net issue proceeds for the expansion of the network infrastructure by setting up new 4G and 5G sites and the expanding the capacity of existing 4G sites.

A sum of Rs 2,175.3 crore will be used for some deferred payments for spectrum to the department of telecommunications and the GST, and the remaining sum will be utilised for general corporate purposes.