Vodafone Idea's Rs 18,000 Crore FPO Set to Launch on April 18, Revealing Price, GMP, and IPO vs. FPO Differences

Vodafone Idea, already a listed company, is gearing up to launch its ₹18,000 crore FPO starting from April 18th, which will remain active until April 22nd. If you’re interested in investing, this FPO presents an opportunity. By investing through this FPO, you may secure shares at a lower price with a higher quantity. Let’s delve into the details of this IPO.

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Vodafone Idea FPO Overview

VI Limited’s IPO will go live for subscription on April 18th and will remain open until April 22nd. This is set to be India’s largest FPO, valued at ₹18,000 crore. The issue comprises entirely fresh shares totaling 1636.36 crore. It is scheduled to be listed on both the NSE and BSE. The price band for FPO will range from ₹10 to ₹11 per share, with a minimum lot quantity of 1298 shares, requiring a minimum investment of ₹14,278. The listing date for this FPO is set for April 25th, Thursday

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Price & Lot size

The VI offers shares at a price range of ₹10 to ₹11 each. For individual investors, the minimum lot size for application is 1298 shares, necessitating an investment of at least ₹14,278. Retail investors must commit a minimum of ₹14,278 to participate. Substantial Non-Institutional Investors (sNII) need to invest in 15 lots (19,470 shares), totaling ₹214,170, while for Big Non-Institutional Investors (bNII), it’s 71 lots (92,158 shares), amounting to ₹1,013,738.

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FPO dates

IPO Open Date : Thursday, April 18, 2024
IPO Close Date: Monday, April 22, 2024
Basis of Allotment : Tuesday, April 23, 2024
Listing Date : Thursday, April 25, 2024

Company Overview

Established in March 1995, Vodafone Idea Limited operates as a leading telecommunications service provider in India. The company offers a wide range of services including voice, data, and value-added services spanning 2G, 3G, and 4G technologies. These services encompass short messaging as well as digital solutions tailored for both enterprises and consumers.

By December 31, 2023, they boasted over 223 million subscribers and a 19.3% market share, alongside handling massive voice and data traffic. Operating in 17 countries, with IoT collaborations globally, the company reported robust total income of ₹424.9 billion for FY2023. With 183,400 tower locations, it provides broadband to over a billion people post-merger. Additionally, 2,300 urban stores cover over 95% of districts, showcasing the company’s extensive reach and strong brand presence.

GMP

If we talk about the GMP (Grey Market Premium), Vodafone Idea Limited’s follow-on public offer has a GMP of approximately around 13%, meaning the premium is currently around ₹1.5 per share. This suggests that the listing price could be around ₹12.5 based on this GMP. However, the GMP tends to fluctuate until the time of listing.

IPO Vs. FPO

An IPO (Initial Public Offering) is when a private company decides to become publicly traded by selling its shares to the public for the first time. Conversely, an FPO (Follow-on Public Offering) happens when a company that’s already listed on the stock exchange decides to issue more shares to the public, typically to raise funds for growth or other financial purposes. Essentially, an IPO is the initial step for a company entering the stock market, while an FPO occurs after a company is already established as a publicly traded entity.

Promotors

The Promoters of the company are Kumar Mangalam Birla, Hindalco Industries Limited, Grasim Industries Limited, Birla TMT Holdings Private Limited, Vodafone International Holdings B.V., Al-Amin Investments Limited, Asian Telecommunication Investments (Mauritius) Limited, CCII (Mauritius), Inc., Euro Pacific Securities Ltd, Vodafone Telecommunications (India) Limited, Mobilvest, Prime Metals Ltd, Trans Crystal Ltd, Omega Telecom Holdings Private Limited and Usha Martin Telematics Limited.

Disclaimer

The GMP (Grey Market Premium) for this FPO may vary over time. It’s important not to solely rely on GMP when making investment decisions. The information provided in this article is solely for educational and knowledge purposes. It does not constitute any buy/sell advice or recommendation. The author and Live4Daily hold no responsibility for any losses incurred. Before making any investment, it is advisable to consult with your financial advisor.