Vodafone Idea's FPO subscribed 6.35 times

22 Apr 2024 , 05:53 PM

The ₹18,000-Crore follow-on public offer (FPO) of indebted telecom operator Vodafone Idea was completely subscribed on the last day of the bidding, The aggregate subscription is 6.35 times the offer on size. .

According to records on the BSE, on the final day of the offering, bids for 8,002 Crore shares were received for the issue, out of a total offer size of 1,260 Crore shares.

Qualified institutional bidders’ (QIBs’) quota was filled 17.56 times, while non-institutional investors’ quotas were subscribed 4.13 times. There were 0.90 times bookings for the portion for retail investors.

The equity share price offered by the company is between ₹10-11, which is less than the current market price of ₹12.22 on the BSE.

Almost sixty anchor investors contributed ₹5,400 Crore to VIL prior to the FPO opening, making it the third-largest anchor book in the world, behind Life Insurance Corporation and One 97 Communications.

With the money raised, the struggling telecom operator will have the strength to close the gap with larger competitors like Reliance Jio and Bharti Airtel in the Indian telecom sector.

Additionally, the money will support Vodafone Idea’s efforts to reduce vendor debt, bolster 4G services, and expedite the much-delayed deployment of 5G.

More than two thirds, or 70%, of the total money obtained will go towards capital expenditures that Vi plans to make in order to strengthen its network infrastructure and increase its market share.

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