A subscription rate of 6.36 times was emerged on the last day of the bidding as the FPO (Follow-on public offer) by Vodafone Idea was concluded on April 22. Investors aggressively participated to achieve the bidding of 8,011.8 crore equity shares, providing value of the Rs 18,000-crore FPO as the largest such operation in the country which was more than three times the size of Rs 1,260-crore FPO of the country’s third-largest telecom operator. This step is one of the many under a broader strategy that aims to raise Rs. 45,000 crore by mixing debt and equity in that proportion.
The QIBs’ subscription turned to be 17.56 times of the subscription rights which had been initially allocated to them. Non-institutional investors were also present with fervour by subscribing to 4.13 times their allotted quotation, as well as retail investors who showed excitement by taking all 91 percent of IPOs.
However, the cornerstone book, Vodafone Idea receives more money from financial investors by issuing shares at the upper price band of Rs 11. The bid was set in the range of Rs 10 to 11 price per share.
In the same league, financial giants such as Citigroup, Goldman Sachs, Morgan Stanley, GQG Partners, Fidelity, UBS Fund Management, Redwheel Funds, HDFC Mutual Fund, Government Pension Fund Global, Carnelian Capital, Copthall Mauritius Investment, as well as Societe Generale participated as anchor investors.
Vodafone Idea utilizes the net proceeds from the issue towards its capital expenditure which is Rs 12,750 crore, specifically for expansion of network infrastructure including deployment of new 4G and 5G sites and enhancing the capacity of existing 4G sites.
On 22nd of April, at the end of the trading session Vodafone Idea shares stood at 12.90 Rs, keeping a straight line. From the last three months to date, the stock has underperformed and lost 17 percent of its value.
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Finance
Yup I am one of those people who bought these!!
ReplyDeleteThis bubble would burst soon..
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