Vodafone Idea FPO Allotment Status boosted investors’ spirits, so bought shares heavily, and know how much the increase was: The FPO of telecom company Vodafone Idea, which is facing a huge financial crisis, initially got a very cold response from the retail investors i.e. common investors. However, there was a lot of interest in it from the beginning from institutional and non-institutional investors. Its spectacular effect was visible on the shares of Voda Idea. It showed a rise in early trade and jumped by 12 percent.
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Vodafone Idea FPO |
Ultimately, Vodafone Idea’s FPO (Vodafone Idea FPO allotment status) worth Rs 18 thousand crore was subscribed 6.99 times in three days. In this, the share of investors of every category was filled. Its spectacular effect was visible on the shares of Voda Idea. It showed a rise in early trade and jumped by 12 percent.
Vodafone Idea FPO Allotment Status
Vodafone Idea will use the funds from FPO for 4G coverage, 5G rollout, and capacity expansion. The CEO said that the target is to start 5G services in some places after 6-9 months of the issue.
The Telecom sector is in focus in the stock market. The reason is Vodafone Idea’s follow-on public offer i.e. FPO, which has received a tremendous response. FPO closed after filling 7 times on the last day. This is India’s largest FPO, which is worth Rs 18000 crore. It received more than 11.6 lakh applications.
How to check Vodafone Idea FPO Allotment Status
- Go to the official website of BSE India
- Visit https://www.bseindia.com/investors/appli_check.aspx
- Click on Equity in the Issue Type
- Select Vodafone Idea Ltd in the issue name
- Fill in the application number
- Enter PAN card ID details
- Click on ‘I am not a Robot’ and press the search button
Tremendous response to Vodafone Idea FPO
Category Subscription (fold)
total 7x
QIB 19.3x
NII 4.5x
Retail 1x
Vodafone Idea FPO Allotment: Benefit of good response
Vodafone Idea FPO Allotment has received an excellent response from investors. This can have many benefits in the future. The listing of FPO shares will take place on 25th April. Now it will be easy for the company to get a loan of Rs 25000 crore. On February 27, 2024, approval was given to raise Rs 20,000 crore through equity and Rs 25,000 crore through debt.
Vodafone Idea will use the funds received from FPO for 4G coverage, 5G rollout, and capacity expansion. The CEO said that the target is to start 5G services in some places after 6-9 months of the issue. Also, the idea is to provide 5G services to subscribers (40% of the revenue) in the next 24-30 months.
Stake in Vodafone Idea
Existing Investor Share (%)
DIPAM 32.2
Vodafone PLC 32.3
AB Group 18.1
Competition between Reliance Jio and Airtel
Now after the successful FPO, it will be a little easier for Vodafone Idea to raise a loan of Rs 25 thousand from banks. Additionally, Vodafone Idea will also strengthen its infrastructure, which will enable the company to expand its 4G and 5G coverage.
If Vodafone Idea improves its infrastructure, it will also help it win back its subscribers, which it is continuously losing to Reliance Jio and Bharti Airtel.
In February, Jio and Airtel added 35 and 15 lakh new users respectively. At the same time, 10 lakh users of Vodafone Idea were reduced. Vodafone Idea, which was formerly the country’s largest telecom carrier by number of customers, is currently in third position with 22.25 crore.
Vodafone Idea share price
Today i.e. on Tuesday (April 23), Vodafone Idea shares (Vodafone idea share price) jumped by about 12 percent in early trading. From this, it is believed that investors have taken the FPO very positively and they feel that the company’s problems will be reduced shortly.
Talking about the last six months, Vodafone Idea has given 31 percent returns. At the same time, investors have earned more than 125 percent profit from the company in one year.
Indus Towers Share Price
Indus Towers shares have come into focus due to Vodafone Idea’s follow-on public offer (Vodafone Idea FPO). On Tuesday, April 23, shares of Indus Towers closed at Rs 360.60 with a rise of 3.09 percent. During the day’s trading, it had jumped by more than 4 percent. This rise in the company’s shares has come after a report by brokerage firm CLSA. CLSA has upgraded the rating of Indus Towers to ‘Buy’. Besides, its target price has also been increased from Rs 335 per share to Rs 450.
According to the brokerage, Indus Towers could significantly benefit from Vodafone Idea’s fund raise and plans to connect around 48,000 sites for 4G and 5G technology. The brokerage has also raised its 2025 and 2026 projections for the company, including an additional 24,000 tenancies. The brokerage said its EBITDA growth could increase to 10 percent in 2026.
According to industry estimates, Indus Towers owes around Rs 7,000 crore to Vodafone Idea. The brokerage also said Vodafone Idea’s settlement of past dues of Rs 5,700 crore should add Rs 21 to its share price.
Meanwhile, Vodafone Idea’s FPO closed with 6.36 times subscription on the last day. Investors placed bids for equity shares worth about Rs 8,011.80 crore. Through FPO, the telecom company had put 1,260 crore shares for sale. The company will get capital of Rs 18,000 crore from FPO. Vodafone Idea plans to raise Rs 45,000 crore from various sources. This FPO is also part of this scheme.
Indus Towers shares have given excellent multi-bagger returns of over Rs 150 in the last year. However, CLSA says the company is still trading at a 60 percent discount to its global peers, which makes it an attractive investment bet.
(The objective of this article is just to offer information. Before investing in the stock market, please get in touch with your financial advisor.)