Vodafone Idea Limited FPO: Shaping India's Telecom Future
Vodafone Idea Limited FPO date is slated to be open for subscription from April 18, 2024, to April 22, 2024. This BSE, NSE FPO follows a Book Built Issue FPO.Vodafone Idea Limited's FPO price is fixed in the range of Rs.10 to Rs.11 per share. The total issue size of this FPO amounts to Rs.18,000.00 Cr. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non-institutional investors.
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Vodafone Idea LTD FPO
Vodafone Idea Limited, a telecommunications juggernaut established in 1995, holds the distinction of being India's third-largest service provider in the sector. Offering a comprehensive suite of services encompassing voice, data, enterprise, and value-added services like short messaging and digital services, the company operates across a spectrum of technologies, including 2G, 3G, and 4G.
Boasting an impressive subscriber base of over 223 million as of December 31, 2023, Vodafone Idea commands a subscriber market share of 19.3%. Its network facilitated approximately 401 billion voice minutes and a staggering 6,004 billion MB of data in the quarter ending December 31, 2023. The company's infrastructure is robust, with an extensive network comprising approximately 183,400 tower locations and over 438,900 broadband sites, all VoLTE-enabled. Moreover, its population coverage exceeds 1.2 billion individuals, with services reaching over 487,000 towns and villages across India.
Financially, while Vodafone Idea has witnessed growth in total assets and revenue, there has been a decline in net worth. The forthcoming FPO aims to raise Rs. 18,000 Cr, with proceeds earmarked for network expansion, spectrum payments, and general corporate purposes.
Priced at Rs. 10-11 per share, the FPO's valuation appears neutral compared to industry averages, with a P/E ratio ranging from -1.30x to -1.09x. Despite facing challenges such as substantial indebtedness and intense competition, the company possesses strengths like a substantial subscriber base, extensive network, and a respected brand.
The FPO, scheduled from April 18 to April 22, 2024, offers 16,363,636,363 shares, with a lot size of 1298 shares. While dividends haven't been paid in recent years, future payouts hinge on financial performance.
Seasoned investors may view the FPO as an opportunity, especially with the endorsement from Bharti Hexacom. However, the significant issue size raises concerns about market reaction. Investors should conduct thorough due diligence to assess risks and evaluate the potential for revival before making investment decisions.
