Vodafone Idea’s follow-on public offer (FPO) saw a subscription rate of 70 percent by the morning of April 22, the final bidding day. Investors bid for 883.6 crore equity shares out of the 1,260 crore shares offered in the Rs 18,000-crore FPO, marking it as the largest such offering in the country. This move is part of a broader strategy aimed at raising Rs 45,000 crore through a mix of debt and equity.
In terms of investor categories, non-institutional investors (NIIs) led the subscriptions, securing 1.37 times the portion allotted to them. Qualified institutional buyers (QIBs) purchased 94 percent of their designated share, while retail investors showed less enthusiasm, subscribing to only 28 percent of their allocated quota.
The telecom giant, facing financial constraints, managed to raise Rs 5,400 crore from institutional investors through the anchor book at the upper price band of Rs 11. The price band for the FPO was set at Rs 10-11 per share.
Anchor investors included prominent names like Citigroup, Goldman Sachs, Morgan Stanley, GQG Partners, Fidelity, UBS Fund Management, Redwheel Funds, HDFC Mutual Fund, Government Pension Fund Global, Carnelian Capital, Copthall Mauritius Investment, and Societe Generale.
Vodafone Idea plans to utilize Rs 12,750 crore of the net proceeds from the issue for expanding its network infrastructure, including setting up new 4G and 5G sites and enhancing the capacity of existing 4G sites.
As of 12:02 am, Vodafone Idea shares were trading at Rs 12.5, marking a 3.1 percent decline from the previous close. Over the past three months, the shares have seen a 17 percent decrease in value.
