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Business News/ Markets / Ipo/  Vodafone Idea FPO fully subscribed: GMP, subscription status to review. Should you apply as bidding ends soon?
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Vodafone Idea FPO fully subscribed: GMP, subscription status to review. Should you apply as bidding ends soon?

Vodafone Idea shares are available at around ₹12.50 apiece on NSE, which is ₹1.50 above Vodafone Idea FPO GMP today

Vodafone Idea FPO allotment date is most likely on 23rd April 2024.Premium
Vodafone Idea FPO allotment date is most likely on 23rd April 2024.

Vodafone Idea FPO: Bidding for the follow-on public offer (FPO) of Vodafone Idea Ltd is going to end today. As per the Vodafone Idea FPO subscription status, investors of the QIB and NII segments have responded positively to this follow-on offer of the Indian telecom major. It was a strong response by QIB and NII investors that enabled the FPO to get fully subscribed just a few hours before the close of bidding. According to stock market observers, Vodafone Idea FPO is available at a premium of 1.30 apiece, which means Vodafone Idea share is quoting higher than the Vodafone Idea FPO GMP (grey market premium) because Vodafone Idea share price today is 12.35 apiece on NSE.

Vodafone Idea FPO GMP today

As per the stock market observers, Vodafone Idea shares are quoting around 12.30 apiece in the grey market today, which is 0.20 below the Vodafone share price close on Friday last week. However, Vodafone Idea share price and Vodafone Idea FPO GMP both signal over 10 percent return for the investors, which is praiseworthy as the market remained under the bears' grip throughout the week except on Friday. The market observers expected some upside in Vodafone Idea FPO GMP today if the pullback rally further extends during Monday deals.

Vodafone Idea FPO subscription status today

By 4:00 PM on day 3 of bidding, the follow-on issue was subscribed 6.33 times whereas the retail portion of the Vodafone Idea FPO was booked 0.85 times. The NII portion of the Vodafone Idea FPO was subscribed 4.12 times while the QIB segment of the FPO was booked 17.56 times.

Vodafone Idea FPO review

Giving a 'subscribe' tag to the Vodafone Idea FPO, Geojit Finance report says, “Considering the near-term risks of continued losses, subscriber attrition due to lack of expansion of 4G services compared to its peers, VIL is a high-risk proposition in the short to medium term. The long-term outlook will depend on the restructuring of the debt and expansion in 4G & 5G offerings. Given the strong parentage support, we assign the subscribe rating for high-risk investors on a long-term basis."

Infographic: Courtesy mintgenie
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Infographic: Courtesy mintgenie

Marwadi Financial Services has also given a 'subscribe' tag to the Vodafone Idea FPO saying, "Considering TTM Sales of 4,25,768 mn on post-issue basis, the company is going to list at a Market Cap/ Sales of 1.72x with a Market cap of Rs. 7,31,318 mn, whereas its peers namely Bharti Airtel Ltd and Bharti Hexacom Ltd are trading at a Market Cap/ Sales of 4.79x, 4.01x," adding, "We assign a “Subscribe" rating to this IPO as the company is a trusted brand with large subscriber base and enterprise customer base with longstanding relationships. Also, it is available at a reasonable valuation as compared to its peers and reasonable discount to its current market price."

Apart from this, StoxBbox, Pace 360 has assigned a 'subscribe' tag to the Vodafone Idea FPO for high-risk investors. On the other hand, Ahika Research, Acis Capita, Canara Bank Securities, and Ventura Securities have not rated Vodafone Idea FPO.

Vodafone Idea FPO deails

In the wake of the 'T+3 listing rule', most likely Vodafone Idea FPO allotment date is 23rd April 2024 whereas Vodafone Idea FPO allotment date is 25th April 2024.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 22 Apr 2024, 09:36 AM IST
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