NEW DELHI: Telecom service provider Vodafone Idea’s follow-on public offer (FPO) received lukewarm response as the telco got overall 49% subscription in two days. On the second day of bidding, investor interest remained sluggish, with only a 36% overall subscription rate.
According to the subscription data from exchanges, a total of 617.4 crore equity shares were picked up by investors. Meanwhile, qualified institutional investors demonstrated the strongest interest, purchasing 0.93 times their allocated share quota, while non-institutional investors acquired 0.75 times of their reserved portion.
Retail investors subscribed only 0.13 times, purchasing 79.28 crore shares out of the reserved 630 crore shares. On the first day of bidding, the Vodafone Idea FPO saw a subscription rate of 26%.
Market analysts express optimism regarding the issue, citing the encouraging booking of the QIBs portion on the second day. They anticipate that Monday, the final day, will witness a surge in actual subscriptions, bolstering confidence in the offering’s success.
Prior to its FPO, VIL secured Rs 5,400 crore from anchor investors. The company announced in an exchange filing that it allotted 4.91 crore shares to anchor investors at Rs 11/share. Major investors include GQG Partners, Fidelity Investments, UBS Fund Management, Jupiter Fund Management, and AustralianSuper, among others. Indian investors such as India Infoline, Motilal Oswal, HDFC Mutual Fund, SBI General Insurance, and Quant also participated.