Vodafone Idea FPO: Strong Response and Positive Outlook

Vodafone Idea FPO: Strong Response and Positive Outlook
Vodafone Idea FPO: Strong Response and Positive Outlook
Vodafone Idea FPO: Strong Response and Positive Outlook
Vodafone Idea FPO: Strong Response and Positive Outlook

Vodafone Idea FPO: Strong Response and Positive Outlook

Vodafone Idea FPO: Subscription Status and Grey Market Premium

As the bidding for Vodafone Idea Ltd’s follow-on public offer (FPO) nears its end today, the response from Qualified Institutional Buyers (QIB) and Non-Institutional Investors (NII) segments has been notably positive. The FPO garnered full subscription just hours before closure, primarily due to the strong response from these investors. Market observers note that Vodafone Idea shares are trading at a premium of ₹1.30 apiece, indicating higher demand than the grey market premium (GMP).

Subscription Details and Analyst Recommendations

By the end of the third day of bidding, the FPO was subscribed 6.33 times overall. The retail portion saw moderate interest at 0.85 times, while the NII segment showed robust demand at 4.12 times. The QIB segment witnessed overwhelming subscription, booking 17.56 times the offered shares. Analysts have varied opinions on the FPO: Geojit Finance recommends a ‘subscribe’ rating for high-risk investors, emphasizing the need for debt restructuring and 4G/5G expansion. Marwadi Financial Services also suggests subscribing, citing reasonable valuation compared to peers and the company’s strong brand and customer base.

Outlook and Allotment Details

Despite differing opinions, several firms including StoxBbox, Pace 360, and Marwadi Financial Services advocate for a ‘subscribe’ tag, highlighting the potential for high returns. However, analysts at Ahika Research, Acis Capita, Canara Bank Securities, and Ventura Securities have refrained from providing a rating. With the anticipated listing date around April 23, 2024, investors await the allotment of shares, expected by April 25, 2024.

Refrences from Mint

Disclaimer: The views expressed by individual analysts or broking companies are their own, and investors are advised to seek expert guidance before making investment decisions.

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