Vodafone Idea FPO Allotment Status

About the Vodafone Idea FPO

The stock of Vodafone Idea Ltd has a face value of ₹10 per share and the price band for the book building FPO (follow-on public offer) has been set in the range of ₹10 to ₹11 per share. The FPO of Vodafone Idea Ltd will entirely be a fresh issue of shares with no offer for sale (OFS) component. The fresh issue tends to bring in fresh funds into the company, but is also EPS and equity dilutive. On the other hand, OFS is just a transfer of ownership, and hence the OFS is neither equity dilutive nor is it EPS dilutive. The fresh issue portion of the FPO of Vodafone Idea Ltd comprises the issue of 1,750.91 crore shares which at the upper price band of ₹11 per share will translate into a fresh issue size of ₹19,260 crore.

Since there is no offer for sale (OFS) component, the fresh issue size will also double up as the overall size of the FPO. Therefore, Vodafone Idea FPO will comprise of a fresh issue of 1,750.91 crore shares which at the upper end of the price band of ₹11 per share aggregates to total issue size of ₹19,260 crore. The FPO of Vodafone Idea Ltd will be listed on the NSE and the BSE on the FPO mainboard; since it is already a listed company. The fresh funds will be used to purchase equipment for expansion of the telecom network infrastructure and to pay deferred payments for spectrum to Department of Telecom (DOT). 

Promoters currently hold 48.75% in the company, which will get diluted post the FPO to 36.87%. The FPO will be lead managed by Axis Capital, Jefferies India, and SBI Capital Markets, while Link Intime India Private Ltd will be the registrar to the FPO.

Checking the allotment status on BSE website

This is a facility available to all mainboard FPOs, irrespective of who the registrar to the issue is. You can still access the allotment status on the website of BSE India as under. Visit the BSE link for the FPO allotment by clicking on the link below. 

https://www.bseindia.com/investors/appli_check.aspx 

Once you reach the page, here are the steps to follow.
    • Under Issue Type – Select Equity Option
    • Under Issue Name – Select Vodafone Idea Ltd   from the drop down box
    • Enter the Application Number exactly as in the acknowledgement slip
    • Enter the PAN (10-digit alphanumeric) number
    • Once this is done, you need to click on the Captcha to verify that you are not a robot
    • Finally click on the Search Button

In the past, while checking the allotment status on the BSE website, it was necessary to input the PAN number and the application Number. However, now BSE has modified the requirements and it is sufficient if you enter any one of these parameters i.e., either the application / CAF number or the PAN number of the investor.

The allotment status will be displayed on the screen in front of you informing about the number of shares of Vodafone Idea Ltd   allotted into your demat account. It is always advisable to save a screenshot of the allotment status output for subsequently verifying with the demat account credits on or after 24th April 2024. The stock of Vodafone Idea Ltd  will appear in the demat account (if allotted) under ISIN Number (INE669E01016).

Checking the allotment status on Link Intime India Pvt Ltd (Registrar to the FPO)

Here are the steps to follow. Visit the Link Intime registrar website for FPO status by clicking on the link below:

https://linkintime.co.in/initial_offer/public-issues.html

There are three things to remember. Firstly, you can just click on the hyper link given above and directly go to the allotment checking page. The second option, in case you are not able to click on the link, is to copy the link and paste in your web browser. Thirdly, there also a way to access this page via the home page of Link Intime India Private Ltd (www.linkintime.co.in) by clicking on the Public Issues link displayed prominently on the home page. It all works the same and leads you to the same landing page.

Once you are on the landing page, the dropdown in front of you will only show the active FPOs and IPOs, so once the allotment status is finalized, you can select Vodafone Idea Ltd   from the drop-down box. In the case of Vodafone Idea Ltd FPO, the data access will be allowed late on 23rd April 2024 or by middle of 24th April 2024.     

• There are 4 options available to you and you will find these 4 options on the above access page itself. You can either access the allotment status based on PAN or Application Number or DPID / Client ID combination or based on the combination of the bank account / IFSC code used to apply for the FPO. You can select any one of the options that is preferred and provide the details accordingly, as they are radio buttons.

• If you opt for the PAN Number access, then enter the 10 character income tax permanent account number (PAN). This is an alphanumeric code available either on your PAN card or on top of your income tax return. The PAN is a 10 character code issued by the Income Tax Department where the first 5 characters and the tenth character are alphabets while the sixth to ninth characters are numeric.

• The second option is to use the Application Number that you used while making an application for the FPO. The application number is available on the acknowledgement provided to you and you can use that as one of the options to access allotment status.

• The third option is to use the DPID-Client ID combination. Remember that here you have to enter the DP id and the demat client id together as one single continuous string. This DPID / Client ID combination is a numeric string for CDSL demat accounts while it is an alphanumeric string for NSDL demat accounts. This combination of DP ID / Client ID of your demat account will be available in your demat statement or you can also get it online from your online trading account or trading app downloaded on the smart phone.

• The fourth option is to query based on the combination of your bank account number and IFSC number and irrespective of how many bank accounts you have, only use the bank account used for this particular FPO application. Once you click on this option, you find two boxes. First, enter your bank account number as it is. Secondly, enter the 11-character IFSC code, which is available on your cheque book. The first 4 characters of the IFSC code are alphabets and the last 7 characters are numeric. IFSC is an abbreviation for Indian Financial System Code and is unique to each account.

• Finally, click on the Search button

The FPO status with number of shares of Vodafone Idea Ltd   allotted will be displayed on the screen in front of you. You can take a screenshot of the output page for your records. The same can be verified with the demat account on 24th April 2024 or after that. The stock is expected to list on 25th April 2024. The only question now is, what determines chances of allocation in the FPO? It boils down to allocation quota and subscription levels.

Allocation quota for Vodafone Idea FPO

The table below captures the quota allocated to various categories, in terms of the number of shares and also the percentage of the total share capital raised. For investors it is the quota for the retail and the HNI that really matters.

Data Source: BSE

This is a mega sized IPO and hence the chances of allotment are always fairly high. It must be noted here that this is the final break-up of shares and it may differ from the original allocation as there are adjustments made to the number of shares issued. We now turn to how the various categories of investors in the FPO of Vodafone Idea Ltd put in their bids.

Subscription levels for Vodafone Idea FPO

The next thing to look at is the extent of subscription. The table below captures the extent of oversubscription for each of the categories as well as the overall subscription for Vodafone Idea Ltd  FPO.

Data Source: BSE

The response to the FPO of Vodafone Idea Ltd  was modest overall, and the subscriptions were especially modest for the retail and the HNI / NII portion. However, it must be remembered that this is a ₹19,260 crore IPO and even a 6.36X subscription is indicative of substantial appetite in value terms. The QIB portion got subscribed 17.56 times while the HNI / NII portion got subscribed 4.13 times. The Retail portion was undersubscribed at just about 0.91 times resulting in an overall subscription of 6.36 times for the FPO. This is much lower than the median subscription, but as stated earlier, the subscription must be looked at in the context that is the third largest public issue in the history of Indian IPO markets.

Next steps after the closure of the Vodafone Idea FPO

The issue opened for subscription on 18th April 2024 and closed for subscription on 22nd April 2024 (both days inclusive). The basis of allotment will be finalized on 23rd April 2024 and the refunds will be initiated on 24th April 2024. In addition, the demat credits are expected to also happen on 24th April 2024 and the stock will list on 25th April 2024 on the NSE and the BSE. Vodafone Idea Ltd will test the appetite for a deeply loss making telecom company in India, but anchor response has been quite good, as has been the subscription considering the size of the FPO. The credits to the demat account to the extent of shares allotted will happen by the close of 24th April 2024 under ISIN (INE669E01016). 

Investors would do well to remember that the level of subscription is very material as it determines the chances of getting allotment. Normally, higher the subscription ratio, lower the chances of allotment and vice versa. In this case, the subscription levels have been very modest in the FPO; both in the Retail segment and also in the HNI / NII segment. Investors in the FPO need to assess their chances of allotment accordingly. The final status will be known once the basis of allotment is finalized and uploaded for you to check. You can apply the above allotment checking process flow after the basis of allotment is finalized.