Vodafone FPO: Vodafone is bringing the highest FPO of India ever. Know the details. Vodafone FPO: Vodafone Idea’s FPO is valued at ₹18,000 crore. It is viewed positively by Kotak Institutional Equities, despite being slightly delayed.
Vodafone FPO: what to expect
It is expected to improve network coverage. It will enhance competitiveness compared to its rivals. According to the red herring prospectus, Vodafone Idea’s peers include Bharti Airtel Ltd, Bharti Hexacom Ltd, and Reliance Jio Infocomm Ltd. The brokerage is optimistic about the company securing more bank funding post a significant reduction in bank debt. The FPO plans focus on enhancing short-term prospects. Although concerns remain about potential stock dilution and market share gains. In the worst-case scenario, minority investors may not see significant upside due to potential high stake ownership by the GoI. The FPO is set to open on April 18 and close on April 22, as per a BSE filing.
Vodafone plans
Vodafone Idea faces challenges in regaining market share from its larger competitors. Despite losing 19% of the market post-merger due to inadequate network investments, analysts expect the company to bridge the gap in 4G coverage. However, the difference in 5G coverage compared to rivals will still be significant. Kotak Institutional Equities predicts that Bharti and R-Jio will not be able to capture substantial market share. The competitors are better positioned to benefit from potential price increases. They have higher spending capabilities for customer acquisition.
