Vodafone Idea’s follow-on public offer (FPO) shares will list on the stock exchanges on April 25th. The opening price will determine whether the shares debut at a premium or discount. The final issue price was set at Rs. 11 per share, the upper end of the price band. Vodafone Idea successfully raised Rs. 18,000 crore through the FPO, making it the largest in India’s history.
Nuvama Institutional Equities has turned positive on the telecom sector, predicting that a combination of tariff hikes and government support will boost operators’ financials and returns profiles. The brokerage believes Bharti Airtel is the best way to play this trend and has raised its target price. Nuvama has also upgraded Vodafone Idea’s rating to ‘Hold’ and raised its target price, but sees the company’s journey to becoming an investible idea as still some distance away.
Vodafone Idea’s (VIL) follow-on public offer (FPO) of Rs 18,000 crore, the largest in India’s history, was oversubscribed 6.36 times on its concluding day of bidding, April 22, amidst volatile market conditions. The strong investor response saw bids for 8,012.29 crore equity shares against the 1,260 crore shares offered in the FPO. Retail investors showed limited interest, subscribing to 576 crore shares against their allotted quota of 630 crore shares. However, qualified institutional buyers (QIBs), which comprised foreign institutional investors (FIIs), domestic financial institutions, and insurance companies, drove the oversubscription, bidding for 6,321 crore equity shares against the 360 crore on offer, an oversubscription of 17.56 times. Non-institutional investors (NIIs) also participated actively, subscribing to 4.13 times of their allotted quota. The FPO was open for public subscription from April 18 to April 22, with a price band set at Rs 10-11 per share. On Monday, Vodafone shares closed at Rs 12.89 apiece, down 0.23 percent.
Several prominent companies, including Vodafone Idea, Biocon, Piramal Enterprises, Zee Entertainment Enterprises, and Atul, have witnessed fluctuations in their share prices due to evolving market sentiments.
Vodafone Idea’s Follow-on Public Offer (FPO) received an overwhelming response from investors, leading to a surge in its shares by over 13%. The FPO, which involved the sale of 1,260 crore shares worth Rs 18,000 crore, was oversubscribed more than 6 times on the final day of bidding. Qualified institutional buyers (QIBs) and non-institutional investors displayed significant interest, oversubscribing their respective portions by 17.6 times and 4.1 times respectively. Retail investors also participated actively, subscribing to 90% of the shares earmarked for them.
Debt-ridden telecom operator Vodafone Idea (VIL) has secured Rs 18,000 crore through India’s largest-ever follow-on public offering (FPO). The offer received overwhelming support from institutional investors, with subscription levels reaching nearly seven times the offer size. The funds raised will bolster VIL’s competitive position in the Indian telecom market, where it lags behind Reliance Jio and Bharti Airtel.
In a major development, the National Company Law Tribunal (NCLT) has ordered insolvency proceedings against media baron Subhash Chandra in response to a plea filed by Indiabulls Housing Finance. Simultaneously, debt-ridden telecommunications provider Vodafone Idea has successfully raised Rs 18,000 crore through India’s largest follow-on offering (FPO), with strong participation from institutional investors.
