Vodafone Idea FPO listing: Shares list at 7% premium over FPO price
Upstox
1 min read • Updated: April 25, 2024, 11:15 AM
Summary
Vodafone Idea's FPO was oversubscribed nearly seven times as it received bids worth ₹88,124 crore. However, the company will only retain ₹12,600 crore as it had collected ₹5,400 crore from anchor investors. The FPO is the largest ever. Before this, the largest FPO in the Indian market was a ₹15,000 crore share sale by YES Bank in 2020.
Shares of Vodafone Idea opened at ₹11.80, a premium of 7.2%, after its follow-on offering (FPO) listed on the bourses on Thursday, April 25, 2024.
At 11:15 am, the stock was trading at ₹13.45 per share, reflecting a gain of over 22% from the issue price of ₹11 apiece.
Vodafone Idea's FPO was oversubscribed nearly seven times as it received bids worth ₹88,124 crore. However, the company only retained ₹12,600 crore as it had collected ₹5,400 crore from anchor investors.
The FPO was the largest ever. Before this, the largest FPO in the Indian market was a ₹15,000 crore share sale by YES Bank in 2020.
The fundraising would allow the ailing telco to improve its positioning in the Indian telecom market, where it is presently trailing larger rivals like Bharti Airtel and Reliance Jio by a wide margin.
The funds will also help Vodafone Idea shore up finances for 5G roll-out, strengthening 4G services, and payment of vendor dues.
According to a regulatory filing, Vodafone Idea's (VIL) board had fixed the FPO offer price at ₹11 per equity share.