Vodafone Idea’s Rs 18,000 Crore FPO Fully Subscribed; GMP Hints Premium Shares; Check Subscription Status

Vodafone Idea, India's third-largest telecom operator, witnessed overwhelming investor interest as its follow-on public offer (FPO) of Rs 18,000 crore was fully subscribed by the afternoon of April 22, marking the final day of bidding. Subscription data from exchanges revealed that investors eagerly snapped up 1,289.8 crore equity shares.

This offering stands as the largest of its kind in the country and forms an important part of Vodafone Idea's comprehensive plan to amass Rs 45,000 crore through a blend of debt and equity measures.

Non-institutional investors (NIIs) led the charge, demonstrating significant enthusiasm by subscribing to twice the portion reserved for them. Qualified institutional buyers (QIBs) also displayed confidence in the offering, purchasing 1.34 times their allotted quota of shares. However, retail investors are yet to fully embrace the FPO, subscribing to only 43% of their allocated shares.

Institutional investors have already shown strong support for Vodafone Idea, with the telecom giant raising an impressive Rs 5,400 crore from them via the anchor book, priced at the upper band of Rs 11 per share. Notable anchor investors include Citigroup, Goldman Sachs, Morgan Stanley, and HDFC Mutual Fund, among others.

Vodafone Idea intends to utilize a significant portion of the net proceeds from the FPO, amounting to Rs 12,750 crore, for the expansion of its network infrastructure. This expansion strategy includes setting up new 4G and 5G sites and enhancing the capacity of existing 4G sites, positioning the company for future growth and technological advancement.

Despite the positive response to the FPO, Vodafone Idea's shares witnessed a dip, trading with cuts exceeding 4% at Rs 12.35 per share as of 1:15 pm on the National Stock Exchange (NSE). However, the stock has recorded a surge of over 90% in the past year, reflecting growing investor optimism. Over the last three years, the stock has delivered returns of nearly 50%.