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Vodafone Idea FPO Guide: GMP, important dates, and everything you need to know before investing

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Vodafone Idea FPO GMP, last date and much more; know if you should invest

The Vodafone Idea Follow-On Public Offer (FPO) has garnered significant attention in the stock market, with anchor and institutional investors showing strong interest. Retail investors, however, have been less enthusiastic about the offer. With just one day left to invest as the FPO closes on April 22, 2024, investors are weighing the potential benefits and risks of participating in the offer.

The Vodafone Idea FPO, valued at ₹18,000 crore, has seen active participation from top market participants. The grey market premium (GMP) for the FPO currently stands at ₹1.40 per share, showing an increase from the initial price at the start of the offer.

Despite the overall downturn in the Indian secondary market, market analysts have noted continued positivity in the Vodafone Idea FPO GMP, even amidst sell-off pressure over the past week. The price band for the FPO is set at ₹10 to ₹11 per share, with the share price closing at ₹12.85 on Friday, surpassing the upper end of the price range.

Investors are advised to consider the long-term prospects of Vodafone Idea, with major investors and fund houses showing interest in the struggling company. Experts suggest a cautious approach, allocating moderate funds for the long term and considering post-listing opportunities for additional investment.

As of now, nearly 50% of the Vodafone Idea FPO has been subscribed, with a significant portion of the proceeds allocated towards network infrastructure expansion, including 4G and 5G site setups. The company plans to utilize the funds for network expansion and spectrum payments, along with addressing general corporate needs.

In conclusion, investors are urged to carefully assess the potential risks and rewards of investing in the Vodafone Idea FPO before making a decision by the closing date.

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