Today’s news reports highlight significant interest from both domestic and foreign institutional investors in the upcoming follow-on public offering (FPO) of Vodafone Idea, the largest of its kind in India to date. Foreign investors such as Rajiv Jain-led GQG Partners and Fidelity, along with domestic players like HDFC Mutual Fund, Motilal Oswal Mutual Fund, and Quant Mutual Fund, are reportedly keen on participating in the FPO.
The anchor investor bidding for the Vodafone Idea FPO is scheduled for today, April 16, while the subscription for retail investors will begin on April 18 and close on April 22. The price band for equity shares in the FPO is set at Rs 10 to Rs 11, with a minimum bid size of 1,298 equity shares and subsequent bids in multiples thereof. According to sources cited in a Money Control report, there is significant demand from both domestic mutual funds and foreign institutions, indicating strong interest in the offering.
Vodafone Idea’s management, speaking at a press conference on April 15, expressed confidence that the Rs 18,000 crore FPO would attract maximum subscription, with the anchor investors’ portion expected to be fully subscribed. The proceeds from the FPO are crucial for the company’s plans to launch 5G services, which are essential for its future growth and competitiveness in the Indian telecom market.
The telecom company aims to roll out 5G services in regions accounting for 40% of its total revenue within 24 to 30 months. Despite being focused on 17 priority circles representing 98% of its income and 92% of the industry’s revenue, Vodafone Idea remains the only private operator without 5G services, unlike competitors Airtel and Reliance Jio.
As of 11:12 IST, Vodafone Idea’s share price was trading 3.27% lower at ₹12.73 on the BSE.
