Vodafone Idea (VI) FPO 2024: A Comprehensive Guide to India’s Mega Telecom Share Sale

VI FPO: Key Details

• Issue Type: Book Built Issue FPO (Follow-on Public Offering)
• Total Issue Size: ₹18,000 crores (16,363,636,363 equity shares)
• Fresh Issue: 16,363,636,363 equity shares (aggregating up to ₹18,000 crores)
• Face Value: ₹10 per share
• Price Band: ₹10 to ₹11 per share
• Minimum Order Quantity: 1,298 shares (₹14,278 for retail investors)
• Minimum Investment for HNIs:
  • Small NII (S-NII): 15 lots (19,470 shares), amounting to ₹214,170
  • Big NII (B-NII): 71 lots (92,158 shares), amounting to ₹1,013,738
• Promoters: Kumar Mangalam Birla, Hindalco Industries Limited, and others
• Promoter Holding:
  • Pre-Issue: 48.75%
  • Post-Issue: 36.87%
• Book Running Lead Managers: Axis Capital Limited, Jefferies India Private Limited, SBI Capital Markets Limited
• Registrar: Link Intime India Private Ltd

VI FPO Issue Timeline

• Issue Opens: April 18, 2024
• Issue Closes: April 22, 2024
• Basis of Allotment (Tentative): April 23, 2024
• Initiation of Refunds (Tentative): April 24, 2024
• Credit of Shares to Demat (Tentative): April 24, 2024
• Listing Date (Tentative): April 25, 2024
• Proposed Listing: BSE and NSE

VI FPO Issue Reservation

• QIB: Not more than 50% of the Net Issue
• Retail: Not less than 35% of the Net Issue
• NII (HNI): Not less than 15% of the Net Issue

About Vodafone Idea Limited

Incorporated in March 1995, Vodafone Idea Limited is a leading telecommunications service provider in India. The company offers voice, data, and value-added services across 2G, 3G, and 4G technologies for enterprises and consumers.

As of December 31, 2023, Vodafone Idea had over 223.0 million subscribers, capturing a 19.3% market share. Its network carried 401 billion voice minutes and 6,004 billion MB of data during this period.

Key Financial Highlights

• Total Income for FY2023: ₹424,885 million
• Total Income for 9M FY2024: ₹321,256 million

Financial Information (Restated Consolidated)

• As of December 31, 2023:
  • Total Assets: ₹190,801.80 crore
  • Total Revenue: ₹32,125.60 crore
  • Profit After Tax: ₹-23,563.80 crore
  • Net Worth: ₹-97,931.90 crore
  • Total Borrowing: ₹203,425.70 crore

Key Performance Indicators

• Market Capitalization: ₹73,131.80 crore
• Pre-Issue EPS: ₹-5.85
• Post-Issue EPS: ₹-4.73 (based on annualized 9M FY2024 earnings)

Objects of the Issue

The company proposes to utilize the net proceeds from the VI FPO towards:

• Purchasing equipment for the expansion of network infrastructure, including:
  • Setting up new 4G sites
  • Expanding the capacity of existing 4G sites and new 4G sites
  • Setting up new 5G sites
• Payment of certain deferred payments for spectrum to the Department of Telecommunications (DoT) and the GST thereon
• General corporate purposes

VI FPO Peer Comparison (As of March 31, 2023)

Company Name	EPS (Basic)	EPS (Diluted)	NAV (per share) (Rs)	P/E (x)	RoNW (%)	P/BV Ratio	Financial statements
Vodafone Idea Limited	-8.43	-8.43	-15.28	-0.85	N/A	N/A	Consolidated
Bharti Airtel Limited	14.80	14.57	136.72	84.37	15.84	8.99	Consolidated
Bharti Hexacom Limited	10.98	10.98	84.19	51.91	13.83	6.77	Consolidated
Reliance Jio Infocomm Limited	4.05	1.07	48.00	8.43	N/A	N/A	Consolidated

Whether you’re a seasoned investor or a first-time participant, the Vodafone Idea FPO presents a unique opportunity to invest in one of India’s leading telecom giants. However, it’s crucial to conduct thorough research, understand the company’s financials, and consult with financial advisors before making any investment decisions.

As the VI FPO nears its opening date of April 18, 2024, stay tuned for more updates, expert analyses, and detailed guidance on this highly anticipated public offering.