What you must know about Vodafone Idea FPO?

Tanushree Jaiswal Tanushree Jaiswal 18th April 2024 - 10:53 am
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Vodafone Idea Limited, founded in March 1995, is a telecommunications service provider in India. The firm offers phone, data, and value-added services for enterprises and individuals using 2G, 3G, and 4G technologies, including short messaging and digital services.

As of December 31, 2023, the corporation has approximately 223.0 million customers, accounting for 19.3% of the subscriber market. Its network transmitted 401 billion voice minutes and 6,004 billion megabytes of data.

As of December 31, 2023, Vodafone provides mobile and fixed services to over 300 million users in 17 countries and has IoT cooperation with networks in 45 more. Internet of Things (IoT) platforms worldwide. The organization works under a strong brand established by Vodafone and Idea over three decades ago.

Highlights of the Vodafone Idea FPO

Here are some of the key highlights to the public issue of Vodafone Idea IPO

  • Vodafone Idea FPO is a book-built issuance of ₹18,000.00 crore.  This is a totally new offering of 1636.36 crore shares.VI FPO opens for subscriptions on April 18, 2024 and concludes on April 22, 2024.
  • The allocation for the VI FPO is anticipated to be completed on Tuesday, April 23, 2024. VI FPO will float on the BSE and NSE, with a tentative listing date of Thursday, April 25, 2024.
  • The VI FPO price band is set at ₹10 to ₹11 per share. The minimum lot size for an application is 1298 shares.
  • Retail investors are required to invest a minimum of ₹14,278. The minimum lot size investment for sNII is 15 lots (19,470 shares) for ₹214,170, while for bNII, it is 71 lots (92,158 shares) worth ₹1,013,738.

The firm wants to use the net proceeds to finance the following objects:

Purchase of equipment for the expansion of the network infrastructure by: (a) setting up new 4G sites; (b) increasing the capacity of existing 4G sites and new 4G sites; and (c) setting up new 5G sites; Payment of delayed spectrum payments to the DoT, including GST, and general corporate reasons.

Promoter holdings and investor quota allocation 

Kumar Mangalam Birla, Hindalco Industries Limited, Grasim Industries Limited, Birla TMT Holdings Private Limited, Vodafone International Holdings B.V., Al-Amin Investments Limited, Asian Telecommunication Investments (Mauritius) Limited, CCII (Mauritius), Inc., Euro Pacific Securities Ltd, Vodafone Telecommunications (India) Limited, Mobilvest, Prime Metals Ltd, Trans Crystal Ltd, Omega Telecom Holdings Private Limited, and Usha Martin Telmetic ltd.

The table below captures the gist of the allocation to various categories.

QIB Shares Offered

Not more than 50% of the Net Issue

Retail Shares Offered

Not less than 35% of the Net Issue

NII (HNI) Shares Offered

Not less than 15% of the Net Issue

Lot sizes for investing in the Vodafone Idea FPO

Investors may bid for a minimum of 1298 shares and multiples thereof. The table below shows the lowest and maximum investment by retail investors and HNIs in terms of shares and amounts.

Application

Lots

Shares

Amount

Retail (Min)

1

1298

₹14,278

Retail (Max)

14

18172

₹199,892

S-HNI (Min)

15

19,470

₹214,170

S-HNI (Max)

70

90,860

₹999,460

B-HNI (Min)

71

92,158

₹1,013,738

Key dates for Vodafone Idea FPO and how to apply?

The Vodafone Idea (Vi) FPO will open for subscriptions on April 18 and end on April 22. The share allotment for the FPO is likely to be confirmed on April 23, 2024, with the preliminary listing of Vi FPO shares on the BSE and NSE set for April 25.

The Vi FPO price band is fixed at ₹10-11 per share. The FPO lot comprises 1,298 equity shares. The price band's upper limit of ₹11 per share represents a reduction from the company's previous closing price and current preferential issue pricing. The Vodafone Idea (Vi) FPO will open for subscriptions on April 18 and end on April 22. The share allotment for the FPO is likely to be confirmed on April 23, 2024, with the preliminary listing of Vi FPO shares on the BSE and NSE set for April 25.

Investors can apply either through their existing trading account or the ASBA application can be directly logged through the internet banking account. This can only be done through the authorized list of self-certified syndicate banks (SCSB). In an ASBA application, the requisite amount is only blocked at the time of application and the necessary amount is debited only on allotment. Investors can apply in the retail quote (up to ₹2 lakh per application) or in the HNI / NII quota (above ₹2 lakh). Minimum lot sizes will be known after pricing.

PO Open Date

Thursday, April 18, 2024

FPO Close Date

Monday, April 22, 2024

Basis of Allotment

Tuesday, April 23, 2024

Initiation of Refunds

Wednesday, April 24, 2024

Credit of Shares to Demat

Wednesday, April 24, 2024

Listing Date

Thursday, April 25, 2024

Cut-off time for UPI mandate confirmation

5 PM on April 22, 2024

Financial highlights of Vodafone Idea (Vi) Ltd

The table below captures the key financials of Vodafone Idea (Vi) Ltd for the last 3 completed financial years and 9month of FY24.

Period Ended

31 Dec 2023

31 Mar 2023

31 Mar 2022

31 Mar 2021

Assets

190,801.80

207,242.70

194,029.10

203,480.60

Revenue

32,125.60

42,488.50

38,644.90

42,126.40

Profit After Tax

-23,563.80

-29,301.10

-28,245.40

-44,233.10

Net Worth

-97,931.90

-74,359.10

-61,964.80

-38,228.00

Reserves and Surplus

-146,611.60

-123,038.80

-94,083.60

 

Total Borrowing

203,425.70

201,586.00

190,917.70

180,310.30

Data Source: Company RHP filed with SEBI (All ₹ figures are in crores)

There are few key takeaways from the financials of Vodafone Idea FPO which can be enumerated as under:

1. The company's assets have fluctuated over the last four years. The highest asset value was ₹207,242.70 crores as of March 2023, while the lowest was ₹194,029.10 crores as of March 2022.

2. The company's revenue has varied during the same period. The highest revenue reported was ₹42,488.50 crores in March 2023, while the lowest was ₹38,644.90 crores in March 2022.

3. The company experienced losses in all years. The highest loss was ₹29,301.10 crores in March 2023, and the lowest loss was ₹28,245.40 crores in March 2022.

4. The net worth of Vodafone Idea (Vi) Ltd has been negative throughout the period. The highest negative net worth was ₹97,931.90 crores in December 2023, and the lowest was ₹38,228.00 crores in March 2021.

5. The reserves and surplus have also been negative. The highest negative value was ₹146,611.60 crores in December 2023, and the lowest was ₹94,083.60 crores in March 2022.

6. The company's total borrowing increased over the years. The highest borrowing was ₹203,425.70 crores in December 2023, and the lowest was ₹180,310.30 crores in March 2021.

In summary, Vodafone Idea (Vi) Ltd has faced financial challenges, with consistent losses and negative net worth. The company's revenue and assets have fluctuated, while its borrowing has increased. It's essential for the company to address these financial issues to improve its overall financial health. Keep in mind that these figures are in crores (₹).

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