Vodafone Idea Limited - FPO

About Vodafone Idea Limited FPO

Incorporated in 1995, and amalgamated with Vodafone India in 2018, Vodafone Idea Limited is the third largest telecommunications service provider in India and the sixth largest cellular operator globally. As of 31 December 2023, it held a market share of 19% in the Indian mobile telecommunications services industry with 223 million subscribers. 

It provides voice, data, enterprise, short messaging, and digital services pan India and holds licences for national long distance, international long distance, internet service provider, and registration for infrastructure provider services.

As of Q3 FY24, the company has ~183,400 unique tower locations and over 4.38 lakh broadband (3G and 4G) sites. Additionally, its mobile network reaches more than 4,87,000 towns and villages in India, with broadband services in more than 3.42 lakh towns and villages.

All its products and services are offered under the Vi brand, promoted by the Aditya Birla group and the Vodafone group. The Aditya Birla group is a leading business conglomerate globally, as well as in India, and the Vodafone group is the largest pan-European and African telecommunications company. 

The company saw a CAGR rise of 0.18% in its revenue from operations between FY21 and FY23, and 0.82% between Q3 FY23 and Q3 FY24. However, the 4G/5G subscribers are expected to rise from 66% of the population to 81% of the population between Dec’23 and Dec’28, which could benefit the company. 

And now, Vodafone Idea Limited is coming out with its follow on public offer (FPO). The FPO will be a fresh issue and the money will be utilised for the purchase of equipment required to expand the network infrastructure, payment of deferred payments, and for general corporate purposes. Its shares will be listed on the NSE and BSE.

 Here are key details about the Vodafone Idea Limited FPO:

Financial snapshot

Here’s a quick look at Vodafone Idea Limited FPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Third largest telecommunications service provider in India based on subscriber base and the second largest market share in the Gujarat and Kolkata service areas.
2. Capability to support migration of its entire 4G subscriber base to 5G as it holds the frequency bands of which 7,975.2 MHz spectrum, which is liberalised and can be used towards deployment of any technology (2G, 3G, 4G or 5G).
3. Large network infrastructure of 2G, 3G, and 4G equipment, along with a nationwide fibre optic cable network.
4. Large enterprise customer base which received the CIO Choice Awards 2024, the Digital Initiative of the Year (India) award, 2024 – IoT Initiative of the Year (India) and Gold in the B2B for ReadyForNext initiative at the e4M Indian Marketing Awards 2023.
5. Extensive distribution and service network of 10,000 distributors servicing ~7,87,000 retailers across India as of 31 December 2023. 
6. 2,300 branded urban stores in India including own and franchisee-owned stores, covering over 95% of all districts in India as of Q3 FY24.
7. Strong promoter support as the Aditya Birla group is a leading global conglomerate present in 40 countries as of FY23, and the Vodafone group provides mobile and fixed services to over 300 million customers in 17 countries and has collaborations with mobile networks in 45 other countries as of Q3 FY24.

Risks and threats

1. Operates a capital intensive business with capital expenditure amounting to ₹1,304 crore as of Q3 FY24, and its business could be affected if it is unable to raise additional capital.
2. Has incurred significant indebtedness amassing to ₹2,01,829 crore as of 29 February 2024.
3. Its telecommunication licences and spectrum allocations are subject to terms and conditions which can result in modification, suspension, early termination, expiry on completion of the term or additional payments.
4. Had total trade payables amounting to ₹13,807 crore as of Q3 FY24 and non-payment of large dues to vendors, such as tower vendors and equipment suppliers, can have an adverse effect on its business.
5. Faces intense competition from other telecommunication companies such as Bharti Airtel, Reliance Jio Infocomm, Bharat Sanchar Nigam and Mahanagar Telephone Nigam.
6. Has consistently incurred losses since FY21 to Q3 FY24 and may not be able to achieve or sustain profitability in the future.
7. Churn rate in the mobile telecommunications industry in India is high and it might be able to retain its existing subscribers.

Vodafone Idea Limited FPO details

| Vodafone Idea Limited FPO date

According to the offer document filed by the company with the SEBI, the Vodafone Idea FPO’s opening date – in other words, the Vodafone Idea FPO launch date – will be 18th April 2024. The Vodafone Idea FPO closing date is 22nd April 2024. After this, investors will be updated about the allotment status on 23rd April 2024.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 24th April 2024. The Vodafone Idea FPO listing date is 25th April 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

| Vodafone Idea Limited FPO Price Band

The FPO is a fresh issue. The Vodafone Idea FPO price band has been set between ₹10 and ₹11 per share. Interested investors can choose a price within this band to apply for the FPO. 

The Vodafone Idea FPO listing price will be determined on 25th April 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

| Vodafone Idea Limited FPO Lot size

The Vodafone Idea FPO details have been declared. The Vodafone Idea FPO lot size is set at 1298 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Vodafone Idea FPO issue size is approx ₹18,000 crore. 

How to pre-apply for the Vodafone Idea Limited FPO?

You can pre-apply for the Vodafone Idea Limited FPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Vodafone Idea Limited FPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Vodafone Idea Limited FPO?

If you are interested in this investment opportunity but unsure how to apply for the Vodafone Idea Limited FPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Vodafone Idea Limited FPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Vodafone Idea Limited FPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Vodafone Idea Limited FPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Vodafone Idea Limited FPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Vodafone Idea Limited FPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Vodafone Idea Limited FPO

To apply for the Vodafone Idea Limited FPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Vodafone Idea Limited FPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Vodafone Idea Limited FPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.