Vodafone Idea’s Record Rs 18,000 Crore FPO Fully Subscribed (Image Source: iStockphoto)
Vodafone Idea‘s massive Rs 18,000 crore follow-on public offer (FPO), the largest in India, achieved full subscription on its third day, buoyed by strong interest from global institutional investors like GQG, Capital Group, and Fidelity Investments. The qualified institutional buyers (QIBs) portion saw a subscription of 1.23 times, while non-institutional investors (NIIs) and the retail segment garnered 1.93 times and 42 per cent subscription, respectively.
Rajiv Jain’s GQG Partners, a significant investor in Vi’s anchor book with nearly Rs 1,350 crore investment, continued to show confidence by participating in the FPO. Other foreign institutional investors like Capital Group and Fidelity Investments also displayed keen interest, as per banking sources.
The FPO commenced positively on Thursday, with a 26 per cent subscription rate on the first day, primarily driven by robust demand from QIBs. Priced between Rs 10-11 per share, the FPO is set to conclude today. Previously, the struggling telecom giant raised Rs 5,400 crore from 74 anchor investors by allotting 4.91 billion shares at Rs 11 per share.
Foreign institutional investors including GQG, UBS, AustralianSuper, and Fidelity, among others, subscribed to the telco’s anchor book, along with domestic mutual funds like HDFC, Quant, and Motilal Oswal. Analysts largely recommended subscribing to the FPO, foreseeing improved prospects for the operator following the fresh infusion of funds from the share sale.
At the time of filing, the shares of Vodafone Idea were trading at Rs 12.35, 4.26 per cent down the previous day’s closing. The 52 week high and low of the share is Rs 18.40 and Rs 6 respectively.
According to the BSE analytics, the shares have given massive returns of 91.05 per cent in the last 1 year and 24.67 per cent in the last 2 years.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. TN NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
