Vodafone Idea's FPO attracts strong investor interest, issue booked 49%

Vodafone Idea has received bids totalling Rs 6,790 crore for its follow-on public offer (FPO), with investors subscribing to nearly half of the shares on offer by the second day of subscriptions in the country's largest-ever share sale.

According to data from the National Stock Exchange, investors have bid for 617 crore shares, equivalent to 0.49 times the 1,260 crore shares available in the FPO. Qualified institutional buyers have shown the most interest in the offering.

"Considering the scale of the share sale, the subscription numbers so far appear promising. We anticipate increased participation from retail investors as the bidding progresses," remarked Arun Kejriwal, founder of Kejriwal Research and Investment Services.

The FPO, priced between Rs 10 and 11 per share, will remain open for bids until Monday.

Shares of Vodafone Idea, the country’s third-largest telecom operator by subscriber count, closed 2.3 per cent lower at Rs 12.90 on Friday.

Earlier this month, Vodafone Idea initiated the Rs 18,000 crore FPO, the largest-ever, as part of its strategy to raise funds for the launch of its 5G service and expansion of 4G coverage.

During the week, the company allotted shares worth Rs 5,400 crore to institutional investors, including GQG and Fidelity.

Vodafone Idea intends to utilise Rs 5,720 crore of the raised funds to establish 22,000 5G sites by fiscal 2026, with 10,000 sites targeted for completion in fiscal 2025.

(With Reuters inputs)