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20 April 2024

Vodafone Idea Limited FPO

Vodafone Idea or Vi, an Indian mobile network has launched its Follow-on Public Offer (FPO) to raise Rs 18,000 crores. The stock of Vodafone Idea FPO has a face value of ₹10 per share and the price band for the book building FPO (follow-on public offer) has been set in the range of ₹10 to ₹11 per share. Vodafone Idea FPO will entirely a fresh issue of 1636.36 crore shares. The fresh issue tends to bring in fresh funds into the company, but is also EPS and equity dilutive.

Vodafone Idea Limited FPO Overview

Detail	Description
IPO Date	April 18, 2024 to April 22, 2024
Face Value	₹10 per share
Price Band	₹10 to ₹11 per share
Lot Size	1298 Shares
Total Issue Size	16,363,636,363 shares (aggregating up to ₹18,000.00 Cr)
Fresh Issue	16,363,636,363 shares (aggregating up to ₹18,000.00 Cr)
Issue Type	Book Built Issue FPO
Listing At	BSE, NSE
Share holding pre issue	50,119,820,375
Share holding post issue	66,483,456,738

VI FPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Thursday, April 18, 2024
IPO Close Date	Monday, April 22, 2024
Basis of Allotment	Tuesday, April 23, 2024
Initiation of Refunds	Wednesday, April 24, 2024
Credit of Shares to Demat	Wednesday, April 24, 2024
Listing Date	Thursday, April 25, 2024
Cut-off time for UPI mandate confirmation	5 PM on April 22, 2024

VI FPO Reservation

Investor Category	Shares Offered
Anchor Investor Shares Offered	4,909,090,908 (30.00%)
QIB Shares Offered	3,272,727,273 (20.00%)
NII (HNI) Shares Offered	2,454,545,454 (15.00%)
bNII > ₹10L	1,636,363,636 (10.00%)
sNII < ₹10L	818,181,818 (5.00%)
Retail Shares Offered	5,727,272,727 (35.00%)
Total Shares Offered	16,363,636,362 (100%)

VI FPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1298	₹14,278
Retail (Max)	14	18172	₹199,892
S-HNI (Min)	15	19,470	₹214,170
S-HNI (Max)	70	90,860	₹999,460
B-HNI (Min)	71	92,158	₹1,013,738

Company & Financials

The company was established in March 1995, Vodafone Idea Limited is a telecommunications service provider in India. The company provides voice, data, and value-added services across 2G, 3G, and 4G technologies, such as short messaging and digital services for enterprises and consumers.Vodafone offers mobile and fixed services to 300M+ customers in 17 countries and it operates under a strong brand with over three decades of experience from Vodafone and Idea. Total income for FY2023 was ₹424,885 million, with ₹321,256 million for the nine months ended December 31, 2023.

Vodafone Idea Limited Financial Information

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	190,801.80	207,242.70	194,029.10	203,480.60
Revenue	32,125.60	42,488.50	38,644.90	42,126.40
Profit After Tax	-23,563.80	-29,301.10	-28,245.40	-44,233.10
Net Worth	-97,931.90	-74,359.10	-61,964.80	-38,228.00
Reserves and Surplus	-146,611.60	-123,038.80	-94,083.60
Total Borrowing	203,425.70	201,586.00	190,917.70	180,310.30
Amount in ₹ Crore

Key Performance Indicator

	Pre IPO	Post IPO
EPS (Rs)	-5.85	-4.73
P/E (x)	-1.88	-2.33

Objectives of the Issue

The company proposes to utilise the Net Proceeds towards funding of the following objects:

1. Purchase of equipment for the expansion of the network infrastructure by: (a) setting up new 4G sites; (b) expanding the capacity of existing 4G Sites and new 4G sites; and (c) setting up new 5G sites;
2. Payment of certain deferred payments for spectrum to the DoT and the GST thereon; and

3. General corporate purposes.

Vodafone Idea FPO review

VODAFONE IDEA LIMITED is the third largest player in telecommunication services and based on its financial performance so far with negative net earnings and the second mega issue offer in the last five years are the point of concern. Looking at the interest of big investors, fund houses, and the helping hand from the Government of India may bring this ailing player on track in coming years. Considering this, well-informed/cash surplus investors may park moderate funds for long term and may add on post listing at lower levels to average out the investment with a long term investment strategy.

FAQs for Vodafone Idea FPO

Why VI FPO?

The initial public offer (IPO) of Vodafone Idea Limited offers an early investment opportunity in Vodafone Idea Limited. A stock market investor can buy VI FPO shares by applying in IPO before Vodafone Idea Limited shares get listed at the stock exchanges. An investor could invest in VI FPO for short term listing gain or a long term.
Is VI FPO good?

Our recommendation for VI FPO is to subscribe for long term.
When will VI FPO allotment status?

The VI FPO allotment status will be available on or around April 23, 2024. The allotted shares will be credited in demat account by April 24, 2024.
When will VI FPO list?

The VI FPO list date is not yet available. The VI FPO is planned to list on April 25, 2024, at BSE, NSE.