Vodafone Idea Follow-On Public Offering (FPO) Information: The date for the Vodafone Idea FPO has been finalized, scheduled to commence on April 18 and conclude on April 22. The FPO aims to raise approximately ₹18,000 crores through a fresh issue of ₹18,000 crores and an offer for sale of equity shares priced at ₹10 each. The allocation breakdown is set at 35% for retail investors, 50% for Qualified Institutional Buyers (QIB), and 15% for High Net Worth Individuals (HNI).
Vodafone Idea ranks as the third-largest telecommunications service provider in India by subscriber base (Source: TRAI Subscription Report). According to the GSMA Intelligence Database, globally, they hold the sixth position among cellular operators in terms of subscribers within a single country of operation. Leveraging their nationwide network, they offer a wide array of services including voice, data, enterprise solutions, and value-added services (VAS) such as short messaging and digital services across 2G, 3G, and 4G technologies. Additionally, they provide connectivity solutions to enterprise clientele and possess active licenses for national long-distance (NLD), international long-distance (ILD), internet service provider (ISP), and infrastructure provider (IP-1) services. Their network facilitates inter-service area voice traffic as well as international voice traffic through interconnections enabled by their active licenses.
Vodafone Idea’s promoters belong to the Aditya Birla Group and the Vodafone Group. The Aditya Birla Group is a prominent business conglomerate in India with a global presence across 40 countries spanning various sectors such as cement, metals and mining, mobile telecommunications, retail, financial services, textiles, chemicals, renewables, real estate, and jewelry retail. During the Financial Year 2023, the Aditya Birla Group also generated revenues from operations in North and South America, Europe, and Asia (excluding India). The Vodafone Group stands as the largest telecommunications company in Europe and Africa, providing mobile and fixed services to over 300 million customers across 17 countries. Additionally, it collaborates with mobile networks in 45 other countries and boasts one of the world’s largest Internet of Things (IoT) platforms.
All services and products are offered under a strong brand umbrella supported by the reputable Vodafone and Idea brands, with a collective operational experience of over three decades. Their total income for the Financial Year 2023 and the nine-month period ending on December 31, 2023, amounted to ₹424,885 million and ₹321,256 million, respectively.
| PO Date | April 18, 2024 to April 22, 2024 |
| Listing Date | April 25, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹10 to ₹11 per share |
| Lot Size | 1298 Shares |
| Total Issue Size | 16,363,636,363 shares (aggregating up to ₹18,000.00 Cr) |
| Fresh Issue | 16,363,636,363 shares (aggregating up to ₹18,000.00 Cr) |
| Issue Type | Book Built Issue FPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 50,119,820,375 |
| Share holding post issue | 66,483,456,738 |
| IPO Open Date | Thursday, April 18, 2024 |
| IPO 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 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | -5.85 | -4.73 |
| P/E (x) | -1.88 | -2.33 |
The company proposes to utilise the Net Proceeds towards funding of the following objects:
VIL holds the position of the third-largest telecommunications service provider, yet it has faced challenges in maintaining consistent performance compared to industry giants like Jio and Bharti. Struggling to regain momentum, VIL aims to attract customers with more user-friendly offerings. However, its financial track record, characterized by negative net earnings and the recent significant issue offering, raises concerns. The involvement of major investors, fund houses, and potential government support may aid in reviving this struggling player in the future. Therefore, investing in VIL at the current offering price is a long-term proposition. Historically, post its RI in April 1995, the company’s stock experienced declines below the offer price, a trend that may repeat itself. In light of this, well-informed and financially stable investors may consider allocating moderate funds for the long term, possibly adding more post-listing at lower levels to balance the investment with a long-term strategy.
Vodafone Idea Limited’s revenue increased by 9.95% and profit after tax (PAT) dropped by -3.74% between the financial year ending with March 31, 2023 and March 31, 2022.
| 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 |
| Amount in ₹ Crore | ||||
| ₹ in Crores | |||
|---|---|---|---|
| Year | Revenue | Expense | PAT |
| 2021 | ₹42,126 | ₹25,007 | ₹44,233 |
| 2022 | ₹38,645 | ₹22,479 | ₹28,245 |
| 2023 | ₹42,489 | ₹25,360 | ₹29,301 |
| Dec 2023 | ₹32,126 | ₹19,255 | ₹23,564 |
