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Vodafone Idea FPO allotment done. Investors can check status on BSE or Link Intime India. VI plans 5G rollout soon, but analysts cautious on market share gains. Govt stake concerns may limit upside.
Vodafone Idea FPO allotment done. Investors can check status on BSE or Link Intime India. VI plans 5G rollout soon, but analysts cautious on market share gains. Govt stake concerns may limit upside.
Rajiv Jain\’s GQG Partners, which had invested nearly Rs 1,350 crore in Vi’s anchor book, continued to invest in the FPO. Additionally, several other foreign institutional investors, such as Capital Group and Fidelity Investments, subscribed to the issue, according to banking sources.
Shares of Vodafone Idea dropped 5% to Rs 12.23 in today\’s trading, ahead of the closure of its Rs 18,000 crore follow-on public offer. Vi attracted Rs 5,400 crore from 74 anchor investors, featuring prominent names like GQG Partners and Morgan Stanley.
Sanjiv Bhasin from IIFL Securities offers insights on various stocks and sectors. He recommends Idea, Vedanta, Maruti, Indiabulls Real Estate, and Vodafone Idea. Bhasin says: \”For me, today belongs to Vodafone Idea. This FPO is the only opportunity to get the stock at Rs 11. This is going to be the stock of the year.\” His analysis covers HDFC Bank, Reliance Industries, GAIL, Wipro, and HCL Tech among others.
The QIB portion was subscribed 61% on the opening day, marking a promising start. Typically, QIBs tend to bid on the final day of the offer. The majority of bids in the QIB portion came from foreign institutional investors (FIIs).
Vodafone Idea\’s shares surged 4% to Rs 13.48 as its Rs 18,000 crore follow-on public offer opened, attracting strong interest from anchor investors like GQG Partners. However, analysts advise caution for retail investors, citing concerns about the company\’s debt burden.
Now, in terms of the discussions with these investors, I believe, everybody is convinced about the India story. Everybody is convinced about the India telecom story because the industry today has a very right structure with three private players.
The public offering, which closes on April 22, has been priced in the band of ₹10-11 apiece, which is 17-29% below the stock\’s Tuesday closing price of ₹12.9. Financial markets were shut on Wednesday for Ram Navami.
Now, in terms of the discussions with these investors, I believe, everybody is convinced about the India story. Everybody is convinced about the India telecom story because the industry today has a very right structure with three private players.
Vodafone Idea plans an Rs 18,000 crore FPO on April 18, attracting GQG Partners with $300-400 million bids. Analysts cautious due to profit concerns, low listing expectations, capex needs, 5G delay, and industry challenges.
Vodafone Idea\’s ₹5,400-crore offer to anchor investors was fully subscribed, with support from various foreign institutional investors, domestic mutual funds, and the Government of India. This fundraising effort aims to strengthen the telco\’s financial position and support its future plans.