Vodafone Idea FPO oversubscribed by 6 times on final day: Details inside

The Vodafone Idea Follow-on Public Offering (FPO) concluded with resounding success, being oversubscribed by more than 6 times on the final day of bidding. Investors demonstrated significant interest, bidding for 8,011.8 crore equity shares, according to data from exchanges.

Vodafone Idea, the country's third-largest telecom operator, offered 1,260 crore shares in the FPO, aiming to raise a total of Rs 18,000 crore, making it the largest such offering in India. This move is part of their plan to raise Rs 45,000 crore through a mix of debt and equity.

Qualified institutional buyers (QIBs) led the charge, subscribing 17.6 times the portion allocated to them. Non-institutional investors also showed significant interest, purchasing 4.1 times their designated share. Retail investors grabbed 90% of the shares allotted to them.

Institutional investors invested Rs 5,400 crore through the anchor book at the upper price band of Rs 11 per share. Notable anchor investors included 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.

Vodafone Idea plans to utilize Rs 12,750 crore of the net proceeds from the issue to bolster its network infrastructure by setting up new 4G and 5G sites and expanding the capacity of existing 4G sites.

Vodafone Idea shares closed flat at Rs 12.90 on April 22 on the stock market. However, they have seen a decline of 17% over the past three months.

As of April 22nd, 2024, at 06:23 PM, the last Grey Market Premium (GMP) for Vodafone Idea's Follow-on Public Offer (FPO) stands at Rs 1.

With a price band of Rs 10.00 to Rs 11.00, the estimated listing price for VI FPO is Rs 12 (upper price limit + today's GMP). This suggests an expected percentage gain/loss per share of 9.09%