In Short:
Vodafone Idea’s Rs 18,000 crore follow-on public offer was fully subscribed on the third day, with strong interest from global institutional investors like GQG, Capital Group, and Fidelity. The FPO was subscribed 1.23 times by qualified institutional buyers, while non-institutional investors and retail segment also showed strong interest. Analysts recommend subscribing to the FPO as the operator’s prospects are expected to improve with the fresh infusion of money.
Vodafone Idea’s Rs 18,000 Crore FPO Fully Subscribed by Global Institutional Investors
Vodafone Idea’s Rs 18,000 crore follow-on public offer (FPO), India’s biggest, was fully subscribed on the third day, with global institutional investors like GQG, Capital Group, and Fidelity Investments showing strong interest in the telecom company. The qualified institutional buyers (QIBs) portion was subscribed 1.23 times, while the non-institutional investors (NIIs) portion and the retail segment were subscribed 1.93 times and 42% respectively.
Key Investors and Progress
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. Vi’s FPO saw a positive start on Thursday, with strong demand from QIBs leading to a 26% subscription rate on the first day of bidding.
Financial Details
The FPO, priced in a range of Rs 10-11 per share, is set to close today. Last week, the telco raised Rs 5,400 crore from 74 anchor investors by allotting 4.91 billion shares at Rs 11 per share. Shares of Vodafone rallied 2.17% on Thursday to Rs 13.20 on the BSE, marking a significant increase in share price over the past year.
Investor Landscape
Foreign institutional investors such as GQG, UBS, AustralianSuper, Fidelity, Redwheel Funds, Abu Dhabi Investment Authority, and others participated in the telco’s anchor book. Domestic mutual funds like HDFC, Quant, Motilal Oswal, and others were also anchor investors in the FPO.
Analyst Recommendations
Most analysts have recommended subscribing to the FPO, citing the potential for the operator’s prospects to improve with the fresh infusion of money from the share sale.
