Vodafone Idea’s Retail Investor Shareholding Surges by 55 Lakh Post FPO
Vodafone Idea's Retail Investor Shareholding Surges by 55 Lakh Post FPO
Vodafone Idea, a major player in India’s telecom sector, recently concluded its Follow-On Public Offering (FPO) raising a whopping Rs 18,000 crore. This move comes as a significant step for the debt-ridden telecom operator, aiming to bolster its financial position and expand its network infrastructure.
Following the FPO, there has been a remarkable surge in retail investor shareholding, with an increase of 55 lakh shareholders, bringing the total to 36.2 lakh by the end of the March quarter. Retail investors, defined as those holding up to Rs 2 lakh worth of the stock, now hold 3.7% of the company’s shares, up from 3.32% in December 2023. Moreover, individual investors with larger stakes saw their ownership rise from 6.06% to 6.17%.
While retail investors showed confidence in Vodafone Idea, mutual funds’ stake dropped from 2.91% to 2.06%. Despite this decrease, the number of mutual fund schemes investing in the company increased, with 6 new schemes adding Vodafone Idea to their portfolios.
Vodafone Idea’s FPO garnered strong interest from institutional investors, including GQG Partners, with the offering oversubscribed more than five times. The FPO, priced between Rs 10 to Rs 11 per share, witnessed enthusiastic participation, reflecting investors’ optimism about the company’s future prospects.
A significant portion of the net proceeds from the FPO, approximately Rs 12,750 crore, will be allocated towards expanding the network infrastructure, focusing on setting up new 4G and 5G sites, and enhancing the capacity of existing 4G sites.
In a press statement, Vodafone Idea announced raising Rs 5,400 crore from 74 anchor investors, showcasing strong support from leading financial institutions such as UBS, Morgan Stanley, and Citigroup Global Markets.
Despite the positive developments, the company’s shares settled marginally lower at Rs 12.89 on the Bombay Stock Exchange, indicating the need for continued efforts to navigate through the competitive telecom landscape.
