Vodafone Idea FPO GMP Today: Subscription begins; Check price band, lot size, allotment and listing date

vodafone idea fpo gmp today: subscription begins; check price band, lot size, allotment and listing date

Vodafone Idea FPO: India’s largest follow-on public offering (FPO) of Rs 18,000 crore by debt-laden telecom operator Vodafone Idea is all set to open for subscription today, April 18. The issue will remain open till April 22, 2024.

Last week, Vodafone Idea has announced an FPO worth Rs 18,000 crore, in addition to the recent Rs 2,000 crore preferential equity issuance to promoters. The firm carries a debt burden of Rs 2.1 lakh crore to the government, with a major portion of it under moratorium until the first half of the financial year 2025-2026 (1HFY26). Following the equity fundraising, the government’s shareholding will decrease from 32 per cent to 24 per cent.

FPO is a process through which listed companies raise funds by issuing new shares to the existing shareholders. It is different from an IPO where the company issue its shares to its public for the first time.

Vodafone Idea FPO Details

The Vodafone Idea FPO is a book-built issue worth Rs 18,000 crore, comprising entirely of a fresh issue of 1636.36 crore shares.

Axis Capital, Jefferies India and SBI Capital Markets are the book running lead managers of the Vodafone Idea FPO, while Link Intime India Private Ltd is the registrar for the issue.

Vodafone Idea FPO Price Band, Lot Size

The price band for Vodafone Idea’s FPO is set between Rs 10 to Rs 11 per share, offering a 14.70 per cent discount from Tuesday’s closing price of Rs 12.90 per share.

Retail investors need to apply for a minimum lot size of 1,298 shares, requiring a minimum investment of Rs 14,278. For sNII, the minimum lot size investment is 15 lots (19,470 shares), totaling Rs 214,170. As for bNII, the minimum lot size investment is 71 lots (92,158 shares), totaling Rs 1,013,738.

Vodafone Idea FPO GMP Today, Price Prediction

According to several websites that track grey market premium (GMP) of unlisted shares, Vodafone Idea FPO is enjoying a GMP of 15.45 per cent.

Considering the upper band (Rs 11) of the issue, Vodafone Idea’s shares are likely to list at Rs 12.7 per share, a discount of 1.55 per cent on Tuesday’s closing price of Rs 12.90.

Vodafone Idea FPO Allotment Date, Listing Date

The allotment for the Vodafone Idea FPO is anticipated to be confirmed by Tuesday, April 23, 2024, while its listing on the BSE and NSE is tentatively scheduled for Thursday, April 25, 2024.

Vodafone Idea FPO Objectives

The net proceeds will be utilised to purchase equipment for expanding its network infrastructure, including setting up new 4G sites, expanding the capacity of existing 4G sites, and establishing new 5G sites. An amount of Rs 12,750 crore will be allocated for this purpose.

Additionally, the company will allocate Rs 2,175 crore for the payment of certain deferred payments for spectrum to the Department of Telecommunications (DoT) and the Goods and Services Tax (GST). The remaining amount will be allocated for general corporate purposes.

Vodafone Idea FPO Promoter Holding

The promoters of VI FPO include Kumar Mangalam Birla, Hindalco Industries, Grasim Industries, Birla TMT Holdings, Vodafone International Holdings BV, Al-Amin Investments, Asian Telecommunication Investments (Mauritius), CCII (Mauritius) Inc, Euro Pacific Securities, Vodafone Telecommunications (India), Mobilvest, Prime Metals, Trans Crystal, Omega Telecom Holdings, and Usha Martin Telematics. Prior to the issue, their shareholding stands at 48.75 per cent, which will decrease to 36.87 per cent post-issue.

Vodafone Idea FPO Anchor Book

India’s third largest telecom company has raised Rs 5,400 crore from anchor investors. The anchor book opened on Tuesday, April 16, wherein nearly 60 anchor investors took part. With this, it has become the third-largest anchor book after One 97 Communications (Paytm) and Life Insurance Corporation (LIC), according to an Economic Times report.

Citing sources, the report said that over 70 per cent of the anchor investors are foreign institutions. It said that Rajiv Jain’s GQG Partners, UBS, Morgan Stanley Investment Management, AustralianSuper and Fidelity took part in the anchor book. GQG Partners reportedly applied for over $400 million in Vi’s anchor book.

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