Understanding the Vodafone Idea FPO: All You Need to Know
After receiving a positive response from investors, the follow-on public offer (FPO) of Vodafone Idea was subscribed 6.5 times overall. If you have invested in this FPO, here is all you need to know about checking the status of your application and the current market scenario regarding Vodafone Idea shares.
Checking Share Allotment Status
– Two Ways to Check Share Allotment: BSE Website and Registrar
– **BSE Website:**
– Step 1: Visit the BSE Website https://www.bseindia.com/investors/appli_check.aspx
– Step 2: Select the issue name from the drop-down list
– Step 3: Enter the application number or PAN number to check the allotment status
– **Registrar (Link Intime India):**
– Step 1: Visit the Link Intime India website https://linkintime.co.in/initial_offer/public-issues.html
– Step 2: Select Vodafone Idea FPO
– Step 3: Enter the PAN details and click search to know the status
Vodafone Idea FPO GMP
In the unlisted market, Vodafone Idea shares are being traded with a premium of Rs 1.20. Analysts advise caution as the company is currently not profitable and may not see significant listing gains.
Vodafone Idea, the third-largest telco in India, is raising funds for network infrastructure expansion, including existing 4G site capacity and new 4G and 5G infrastructure setup. The company aims to roll out 5G services in select areas within 6-9 months post-issue, covering 40% of its revenue base in the next 24-30 months.
While the fundraise is expected to improve VI’s near-term prospects, analysts remain doubtful about its market share gains and potential equity dilution concerns. Kotak Institutional Equities warned of a scenario where the government might own over 80% stake in Vi, limiting upside for minority investors. Axis Capital, Jefferies India, and SBI Capital Markets are the book running lead managers for the VI FPO, with Link Intime India as the registrar.
Hot Take: Should You Invest in Vodafone Idea FPO?
Considering the strong response to the Vodafone Idea FPO and the company’s plans for 5G rollout, the decision to invest should be approached with caution. While there may be short-term gains, the long-term profitability and market competition raise concerns for potential investors. Conduct thorough research and evaluate the risk factors associated with investing in Vodafone Idea before making any decisions.
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