Vodafone Idea FPO subscribed 18% on Day 1

18 Apr 2024 , 03:44 PM

The Vodafone Idea FPO subscription date is set to begin on Thursday, April 18, and end on Monday, April 22. The price range for Vodafone Idea FPO plans is ₹10 to ₹11 per unit. Bids can be placed in multiples of 1,298 equity shares, with a minimum bid limit of 1,298 equity shares. Regarding the FPO issue, every market analyst seems optimistic.

Up to ₹18,000 Crore worth of newly issued equity shares make up the Vodafone Idea FPO's entire offer size.

The red herring prospectus (RHP) states that the company will use the net proceeds from the new issue to finance the following: (i) purchase equipment for ₹12,750 Crore to expand its network infrastructure; this includes (a) opening new 4G sites, (b) increasing capacity at both existing and new 4G sites, and (c) opening new 5G sites; (ii) pay ₹2,175 Crore to the DoT for certain deferred payments for spectrum and the GST thereon; and (v) use the remaining amount for general corporate purposes.

According to BSE data, the government's shareholding pattern for the quarter that concluded in March (Q4FY24) indicates that it owns 32.19% of Vodafone Idea.

The Indian government became Vodafone Idea's largest owner in 2022 after the business converted its outstanding debt to the government into a 36% stake, according to news sources.

The price of Vodafone Idea's shares on the BSE finished Tuesday's trading session 1.82% down at ₹12.92 a share.

As of 15:30 pm on 18^th April 2024, the FPO was subscribed 18%. The QIB category was subscribed 42% whereas the NII category was subscribed 14%. The Retail Category had received bids for  5% of the shares on offer.

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