Vodafone Idea FPO day 2: GMP, subscription status to review. Should you subscribe to this ₹18,000 crore issue?
Vodafone Idea FPO, which opened for subscription yesterday (Thursday, April 18), will close on Monday, April 22. Mostly led by qualified institutional buyers (QIBs) and non-institutional investors, the Vodafone Idea FPO subscription status was 26% on the first day of the share offering. According to BSE statistics, retail investors only bid for 6% of the shares set aside for them, while the QIB quota had 61% subscriptions at the end of the day and the non-institutional investor category got 28% subscriptions.
Arun Kejriwal, founder of Kejriwal Research and Investment Services explained that QIBs should get subscribed to today itself on the second day. This Saturday is a third Saturday, which is a working day, for the bank, and applications getting submitted on Saturday might get reflected on Monday, and the retail portion might see a sudden spurt on the third day. If we see the applications that have come into retail and divide them by the amount received, we get an indication that large applications are coming in for the retail portion.
What I mean is people applying just under 2 lacs. They are not going into the large HNI category; they are going into retail. "Today in the morning, they could have some effect because of the geopolitical situation.
The Nifty 50 is down sharply, and one does not know how markets will react, including Vodafone Idea shares. Even today, you will see decent numbers coming in overall. If QIB itself is subscribed by today, it sends a positive signal; QIBs never get subscribed on the second day.
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