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Vodafone Idea FPO: Here's a step-by-step guide on how to subscribe

Retail investors will need a minimum of Rs 14,278 to bid for one lot of Voda Idea FPO; maximum bid can be for up to 18,172 equity shares at the higher-end of the FPO price band.

Initial public offerings, IPOs, stock market, investors
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Illustration: Binay Sinha

SI Reporter Mumbai

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Vodafone Idea, also known as Voda Idea or Vi, follow-on public offer (FPO) has opened for public subscription today, Thursday April 18, 2024. The telecom major aims to raise up to Rs 18,000 crore through this FPO, through fresh issue of 12.6 billion equity shares.

As of 11:30 am, the offer was off to a slow start with by hardly 0.02 per cent and 0.03 per cent subscription seen from retail and non-institutional investors (NIIs), shows the BSE data.

However, Voda Idea's FPO had received a strong demand from anchor investors. Vodafone Idea FPO raised Rs 5,400 crore from anchor investors, which includes Rs 1,347 crore investments from the US-based GQG Partners.

Vodafone Idea allotted 4.9 billion equity shares to anchor investors at Rs 11 each - i.e. the top end of the FPO price band, thus raising Rs 5,400 crore. As per reports, the demand in the anchor investor category was 2-3 times more than the shares on offer. 

Market analysts are a divided lot on the Vodafone Idea FPO. While few believe that the FPO could strengthen Vodafone Idea's infrastructure and help retain clients; few others remain skeptical as the fund raise may not be able to sustain the company's challenges on the financial front as the debt-laden telecom player owes Rs 2.1 lakh crore to the Indian government.

Meanwhile, here's a step-by-step guide on how to invest in Vodafone Idea FPO

Step 1. Login to your respective demat / trading/ investment account with your registered stock broker.

Step 2. Visit the IPO section on the said application (mobile app) or website of your stock broker.


Step 3. Select the Vodafone Idea FPO (NSE Code = IDEAFPO), and place your bids accordingly. Retail investors will need a minimum of Rs 14,278 to bid for one lot of Voda Idea FPO (i.e. 1,298 shares). Bids can be placed in multiples of 1,298 thereon.

Do note, as a retail investor, you can place your bids for up to 20,000 shares at the lower-end of the offer price, i.e. Rs 10 per share. Alternatively, you can bid up to 18,172 equity shares at the higher end of the price band at Rs 11 per share.

Step 4. You may enter / ensure if your UPI ID is correct and click on the Submit button. Alternatively, you may proceed with net banking and complete your transaction.

This apart, you can buy Voda Idea shares from the bourses during live market hours. However, the Vodafone Idea stock presently trades at Rs 13.45 i.e. a 22.3 per cent premium when considered to the higher-end of the offer price band, and a solid 34.5 per cent premium to the lower-end of the price band.


 

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First Published: Apr 18 2024 | 12:06 PM IST

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