Vodafone Idea Limited – FPO DETAILS
| IPO Date | Apr 18, 2024, to Apr 22, 2024 |
| Price Band | ₹10 to ₹11 per share |
| Lot Size | 1298 Shares |
| Issue Size | ₹18,000 Cr. |
| Allotment Date | 23 April 2024 |
| Listing Date | 25 April 2024 |
Vodafone Idea Company Overview
Vodafone Idea (VI) holds the position as the third largest telecommunications service provider in India based on its subscriber base. The company offers a range of services including voice, data, enterprise solutions, and various value-added services such as short messaging, 2G, 3G, and 4G digital services. As of December 31, 2023, VI boasted a total customer base of 223 million subscribers, accounting for a market share of 19.3%.
VI is jointly promoted by Vodafone Group and Aditya Birla Group. Vodafone Group stands as the largest European and African telecommunications company and is renowned as the world’s largest provider of Internet of Things (IoT) platforms. On the other hand, Aditya Birla Group is a prominent conglomerate with a presence in 40 countries. As of December 31, 2023, Vodafone Group’s subscriber base exceeded 300 million across 17 countries. VI operates an extensive network comprising 183,400 unique tower locations spanning 487,000 towns and villages across India.
Objective of the IPO
Here are a few quick reasons:
- Procuring equipment to expand network infrastructure, involving the establishment of new 4G sites, enhancing capacity at existing 4G sites, and deploying new 5G sites.
- Settling deferred spectrum payments to the Department of Telecommunications (DoT) and associated Goods and Services Tax (GST).
- Allocating funds for general corporate purposes.
Vodafone Idea Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus | Borrowing |
| 31-Mar-21 | 2,03,481 | 42,1260 | -44,233 | -38,228 | – | 1,80,310 |
| 31-Mar-22 | 1,94,029 | 38,644 | -28,245 | -61,965 | -94,084 | 1,90,918 |
| 31-Mar-23 | 2,07,243 | 42,488 | -29,301 | -74,359 | -1,23,039 | 2,01,586 |
Key Performance Indicator
| Market Cap. (Cr.) | 73,131.80 | EPS (Rs) | -4.73 |
| P/E | -2.33 |
Pros
- A robust brand presence complemented by seasoned promoters.
- A significant subscriber base, totaling 223 million subscribers.
- A sprawling telecommunications network, backed by holdings of 8,005.2 MHz of spectrum across various frequency bands.
- Infrastructure primed for 5G technology, positioning the company to capitalize on the advantages of cutting-edge advancements.
Cons
- It has accrued substantial debt and fallen short of meeting specific covenants stipulated in its financing contracts.
- Operates under telecommunication licenses and spectrum allocations subject to terms, ongoing scrutiny, and diverse interpretations, potentially resulting in adjustments, suspension, premature termination, or extra payments.
- Faces the risk of non-payment to significant vendors.
- Confronts fierce competition that may affect its market position and financial performance.
How to Apply for this IPO
1. Go to https://ipo.adityatrading.in/
2. Enter your Client ID
3. Enter the OTP received in your registered mobile number.
4. Choose the IPO and click on apply button.
5. Enter the UPI ID, Quantity, and Cut off the price.
6. Click on submit button
7. Confirm the mandate request received on your phone by entering the UPI Pin.
You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”
