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Vodafone Idea FPO subscription status: Following a muted opening on Thursday, debt-ridden telecom operator Vodafone Idea Ltd was nearly booked halfway by the second day. Retail investors segment was slightly better while non-institutional investors (NIIs) continued to rise in tandem with qualified institutional buyers (QIBs). Nonetheless, market analysts are optimistic about the issueand think that the fact that the QIBs portion getting bookedon the second day itself is encouraging. Furthermore, they think that Monday, the last day, is the only day when the actual subscriptions will begin to flow.
Of the 1,260 crore shares on offer, 617.46 crore was subscribed on Friday, as per BSE data. The issue was booked 49% on the second day.
QIBs garnered 93% of the 360 crore shares that were set aside for them, whilst NIIs picked up 75% of the 270 crore shares that had been allocated for them. Retail investors, who were given the largest portion of the offer, picked up pace, with 13% of the 630 crore shares being subscribed to.
On day 1, Vodafone Idea FPO was subscribed 26%. Based on BSE data, the QIB quota had 61% subscriptions, the NII category was booked 28%, and retail investors had bid for just 6% of the shares set aside for them.
The Vodafone Idea FPO ends on Monday, April 22. It kicked off for subscriptions yesterday, Thursday, April 18. The price band for Vodafone Idea FPO has been fixed in the range of ₹10 to ₹11 apiece. Bids can be submitted in multiples of 1,298 equity shares, with a minimum bid limit of 1,298 equity shares.
On Friday, Vodafone Idea share price ended 2.12% lower at ₹12.92 apiece on BSE.
The Vodafone Idea FPO total offer size comprises of fresh issue of equity shares aggregating up to ₹18,000 crore.
As per the red herring prospectus, the company intends to spend ₹12,750 crore of the total FPO proceeds to buy equipment for the establishment of new 4G sites, boosting the capacity of current 4G sites, and creating new 5G sites, all of which will contribute to the expansion of its network infrastructure.
Out of the ₹12,750 crore set aside for network development, ₹5,720 crore would be used to establish its 5G network. A further ₹2,175.31 crore would be used to pay for spectrum on a deferred basis.
The remaining proceeds from the FPO will be utilised by the telecom firm for a number of general corporate objectives, including meeting working capital needs.
Vodafone Idea garnered around ₹5,400 crore with its follow-on public offering from anchor investors, which included Jupiter Fund Management, Australian Super, GQG Partners, Fidelity Investments, and UBS Fund Management, earlier this week.
The issue's registrar is Link Intime India Private Ltd, and the book running lead managers of the VI FPO are Axis Capital Limited, Jefferies India Private Limited, and SBI Capital Markets Limited.
Vodafone Idea FPO GMP or grey market premium is ₹1.10. The fresh shares being issued under the FPO will likely be listed at ₹12.1, representing a gain of 10% over the upper limit of the price band, according to investorgain.com.
The FPO GMP trend shows no significant change, and is consistent with the previous seven sessions' grey market activities. This pattern is expected to continue until the final day. Grey market premium indicates investors' readiness to pay more than the issue price.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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