Vodafone Idea’s Follow-on Public Offering (FPO) Receives Strong Investor Response

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Shares of Vodafone Idea surged over 13% following the strong reception of its follow-on public offering (FPO) by investors. At around 12.45 pm, shares were up 12.72% to Rs 14.53 apiece, reflecting investor confidence in the telecom giant’s future prospects.

FPO Success

Vodafone Idea’s FPO witnessed overwhelming demand, with subscription levels surpassing expectations. Investors displayed keen interest, bidding for 8,011.8 crore equity shares, marking the FPO as a standout success in the market.

Approval and Adoption

In an exchange filing, Vodafone Idea announced the approval and adoption of the prospectus dated April 22, 2024, signaling a pivotal milestone in the FPO process. The company’s board ratified the decision, paving the way for the offering.

Offer Details

The FPO involved 1,260 crore shares for sale, amounting to Rs 18,000 crore, making it the largest such offering in India to date. Vodafone Idea aims to raise Rs 45,000 crore through a combination of debt and equity, positioning itself for future growth and expansion.

Institutional Investor Interest

Qualified institutional buyers (QIBs) spearheaded the subscription frenzy, oversubscribing their allotted portion by 17.6 times. Non-institutional investors also showed significant interest, subscribing 4.1 times their allotted share. Notable anchor investors include Citigroup, Goldman Sachs, and Morgan Stanley.

Utilization of Proceeds

Vodafone Idea plans to utilize Rs 12,750 crore of the net proceeds from the FPO to enhance its network infrastructure. This includes deploying new 4G and 5G sites and expanding the capacity of existing infrastructure, positioning the company for technological advancement and service enhancement.

Market Performance

Despite the excitement surrounding the FPO, Vodafone Idea shares closed unchanged at Rs 12.90 on April 22. However, the Grey Market Premium (GMP) for Vodafone Idea’s FPO stands at Rs 1, indicating an expected listing price of Rs 12 per share, with a potential gain of 9.09%.


The resounding success of Vodafone Idea’s FPO underscores investor confidence in the telecom firm’s growth trajectory and strategic vision. As Vodafone Idea embarks on its transformative journey, the FPO sets the stage for a new era of growth and innovation in India’s telecom sector.

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