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Vodafone Idea FPO: Institutional Investors Pour Money into Offer after Anchor Investors



Vodafone Idea FPO: After anchor investors, institutional investors rain money on offer

Vodafone Idea, a company facing financial struggles, has seen a surge in investor interest with its follow-on public offering (FPO). Institutional investors have rushed to invest in the FPO after anchor investors injected significant funds into the offering.

The FPO, valued at ₹18,000 crore, gained momentum on Friday as nearly half of the issue has been subscribed, primarily by institutional investors. Overall, the FPO has attracted ₹12,000 crore, with anchor investors contributing ₹5,400 crore in just two days.

With 1,260 crore shares on offer, 617.46 crore shares have already been subscribed, according to data from the Bombay Stock Exchange. Qualified institutional buyers have acquired 93% of the shares reserved for them, while non-institutional investors have purchased 75% of their allocated shares.

Notably, retail investors have shown less enthusiasm, subscribing to only 13% of the shares designated for them despite being offered the largest portion. The funds raised from the FPO will provide Vodafone Idea with relief from its debt, support infrastructure development, and enable the company to focus on 5G services.

A breakdown of the fund allocation reveals that approximately ₹12,750 crore will be used for network infrastructure expansion, ₹5,720 crore for the establishment of a 5G network, ₹2,175.31 crore for spectrum payments, and the remaining funds for working capital. The FPO aims to position Vodafone Idea competitively against its industry peers like Reliance Jio and Bharti Airtel.

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