Vodafone Idea FPO: Offer booked 49% on day 2, lukewarm response from retail investors

Vodafone Idea FPO continued to see a lukewarm response from investors as the follow-on public offer was subscribed only 49% on the second day of bidding on Friday, April 19.

The ₹18,000-crore FPO, which is the largest follow-on issue in India so far, has received a good response from qualified institutional buyers and non-institutional investors while the retail investors have shown a lukewarm interest.

According to the stock exchange data, Vodafone Idea FPO received bids for 617.46 crore equity shares across investor categories against 1,260 crore equity shares on offer.

Also Read: Vodafone Idea FPO opens for subscription: Key things to know about ₹18,000 crore issue

The FPO subscription will close on Monday, April 22.

The Aditya Birla Group company has assigned 50% of the issue size to qualified institutional buyers. Around 15% of the FPO size is marked for non-institutional investors and the remaining 35% for retail investors.

The qualified institutional buyers’ (QIBs) portion was subscribed around 95% until the second day of subscription. Applications for 335.58 crore equity shares were received against 360 crore equity shares on offer for QIBs.

Non-institutional investors’ (NIIs) portion was booked 75% so far. Bids for 202.57 crore equity shares were received from NIIs against 270 crore equity shares on offer.

Retail investors’ category has received a muted response so far. The RII category has been subscribed just 13% so far. Bids for 79.30 crore equity shares have been received against 630 crore equity shares on offer.

Strong response in anchor round for Vodafone Idea FPO

Anchor investors showed a strong response to Vodafone Idea FPO in the pre-bid round on Tuesday. Foreign and domestic investors led by US-based GQG Partners put in ₹5,400 crore worth of bids at the cap price of ₹11 per share.

Vodafone Idea allotted 490 crore (4,90,90,90,908) equity shares to 74 fund schemes at a price of ₹11 per share, mobilising ₹5,399.99 crore.

GQG Partners, Motilal Oswal, Fidelity Securities, Abu Dhabi Investment Authority, UBS Fund Management, Troo Capital Ltd Morgan Stanley, Citigroup Global Markets Mauritius and Jupiter Fund Management are among the anchor investors that received shares in the anchor round.

The US-based GQG Partners put in around ₹1,347 crore in VIL in the anchor round.

Vodafone Idea FPO details

The ₹18,000-crore VIL FPO opened for bidding on Thursday, April 18. The FPO will close on April 22. The telco has fixed the band at ₹10-11 per share, which is at a discount to the current trading price at the cap price. The FPO comprises a fresh issue of 1,636.36 crore equity shares.

Vodafone Idea FPO lot size is 1,298 shares for retail investors. The minimum investment is ₹14,278 for retail investors.

Vodafone Idea shares dropped around 2.65% to close at ₹12.90 on Friday.