5.5 lakh retail investors buy Vodafone Idea shares in Q4
Vodafone Idea's retail investor shareholding surged by 55 lakh post FPO. Individual investor stake reached 6.17%. Mutual funds stake dropped to 2.06%. Company updated exchanges on shareholding. Telecom operator successfully raised Rs 18,000 crore.
Debt-ridden telecom operator , which completed its Rs 18,000 crore FPO successfully on Monday, has seen its retail shareholding growing by 55 lakh to 36.2 lakh in March quarter.The ownership of retail investors, defined as those with holdings of up to Rs 2 lakh in the stock, increased from 3.32% in December 2023 to 3.7% in the quarter ended March 2024. The company also witnessed an increased shareholding of the individual investors having more than Rs 2 lakh invested in the stock from 6.06% to 6.17%.
Additionally, mutual funds have also increased their stake in the stock. In December 2023, 48 mutual funds schemes were invested in the company while 6 new mutual funds added the stock in their portfolios as of March 2024 however, the percentage shareholding of mutual funds decreased from 2.91% to 2.06% for the same period.
At the end of each quarter, companies are mandatorily required to update the exchanges about their shareholding patterns, according to which, there has been significant increase in the number of retail investors having a stake in the company.
Vodafone had launched a follow-on public offering on Thursday, 18th April, to raise Rs 18,000 crore which received a strong response from anchor investors, including GQG Partners. The FPO price band was set at Rs 10 to Rs 11 per share with the minimum lot size for an application being 1,298 shares.
The Vodafone FPO, the largest in India’s history, was fully subscribed more than 5 times by around 03.00 pm on April 22, the final day of bidding, with investors bidding for 6,396.4 crore equity shares, subscription data from exchanges showed.
Vodafone Idea, the third largest telecom operator in India, will spend Rs 12,750 crore of the net issue proceeds for the expansion of the network infrastructure by setting up new 4G and 5G sites and expanding the capacity of existing 4G sites.
has raised Rs 5,400 crore from 74 anchor investors, the firm said in a press statement on Wednesday. The investors include GQG Partners, The Master Trust Bank of Japan, UBS, Morgan Stanley Investment Management, Fidelity, Quant, Citigroup Global Markets, Australian Super, and Motilal Oswal.
The shares of the company settled at Rs 12.89 on BSE, 0.23% lower on Monday.
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Source: Stocks-Markets-Economic Times
