The Vodafone Idea FPO will conclude on Monday, April 22. It began for subscriptions yesterday, Thursday, April 18. On the first day of the share sale, 26% of the Vodafone Idea FPO subscription status was made up of non-institutional investors and qualified institutional buyers (QIBs).
Retail investors only bid for 6 percent of the shares allotted to them, as per BSE figures, but the non-institutional investor category received 28% of subscriptions and the QIB quota had 61% at the conclusion of the day.
The founder of Kejriwal Research and Investment Services, Arun Kejriwal, clarified that QIBs should be subscribed to today, the second day, itself. This Saturday is the third Saturday that the bank is open for business. Applications made on Saturday may appear on Monday, and on the third day, there may be a sharp increase in the retail sector. Large applications are pouring in for the retail part, as can be seen if we split the number of applications that have come in by the total amount received.That is, applicants with somewhat less than $2 lac. They are entering the retail space rather than the massive HNI segment.
Review of Vodaphone Idea FPO:
Swastika Investmart Ltd.
The brokerage claims that bolstering Vodafone Idea's network infrastructure is the primary goal of this transaction. To enhance competitiveness against Jio and Airtel, the two dominant players in the industry, the building of new 4G and 5G towers is crucial for augmenting network coverage and capacity. Additionally, some of the profits will be applied to debt repayment, which might improve Vodafone Idea's financial situation.
However, potential investors encounter challenges as a result of Vodafone Idea's financial situation. Unlike its rivals, Vodafone Idea has continuously witnessed a decline in its customer base. Furthermore, enormous spectrum and perhaps $4 billion in AGR (Adjusted Gross Revenue) liabilities might cause a financial disaster in 2026.
The FPO offers an enticing 15–17% discount, but VI doesn't appear to have a clear path to recovery very soon. As such, investors have to thoroughly consider these issues before to participating in the FPO, particularly with regard to VI's financial situation and any liabilities, the brokerage stated.
Financial Services Geojit Ltd.
The brokerage claims that through a reverse stock offering (FPO), the Indian government, which now owns a 32% share in Vodafone Idea, will eventually purchase a 24% position. The issue is offered at the top price range of ₹11, representing a 14.7% decrease from the last closing price of Rs.12.9 (16 April 2024).
Given the near-term chances of continuous losses and customer attrition due to the absence of development of 4G services in compared to its peers, Vodafone Idea provides a high risk proposition in the short to medium term. The long term picture will be determined by growing 4G and 5G services and restructuring the debt. We highly recommend subscribing to investors who are deemed high risk because of their strong parental support.
Now, Vodafone Idea FPO GMP
The grey market premium, or Vodafone Idea FPO GMP, is ₹1.20. According to investorgain.com, the newly issued shares under the FPO are expected to be listed at ₹12.2, which would represent a gain of 10.91% above the upper limit of the price band.
The FPO GMP trend remains unchanged and is in line with the grey market activity of the preceding seven days. It is anticipated that this trend will hold true until the very end. The willingness of investors to pay over the issue price is shown by the grey market premium.
A "grey market premium" denotes the willingness of investors to part with more money than the issue price.
