“A lot of HNIs and retail investors had subscribed to the FPO with an arbitrage point of view,” said Jimeet Modi, founder, Samco Securities. “They have locked their gains and booked profits and moved on from the company.”
Vodafone Idea’s ₹18,000-crore follow-on public offer (FPO), India’s biggest, closed successfully earlier this week having been subscribed 7 times, with strong demand from global institutional investors. Vodafone Idea had priced the issue at ₹10-11 a share, a 26% discount to the ₹14.87 a share that was recently set for the preferential issue to one of the promoters.
Jimeet Modi said that about 60-70% of the investors put money only from the short-term perspective and the rest 20-30% of retail investors aimed to hold for a longer period.
The FPO had the highest subscription of 19.31 times from Qualified Institutional Buyers and 4.54 times from non-institutional investors. The retail portion was also fully subscribed. It had also raised ₹5,400 crore via anchor investors.