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Vodafone Idea FPO: Shares Debuts With 7.27% Premium At Rs 11.80; Book Profits Or Hold? – Prime Time News24


Vodafone Concept’s FPO raised Rs 18,000 crore in what stands as India’s largest-ever FPO.

Vodafone commenced its subscription interval on Thursday, April 18, concluding on Monday, April 22.

The opening worth of Vodafone Concept FPO shares stood at Rs 11.80 per share on the NSE, marking a 7.27% enhance from the problem worth of Rs 11. In the meantime, on the BSE, the opening worth for Vodafone Concept FPO shares at this time was Rs 12 every, reflecting a 9% rise from the problem worth.

The telecom supplier commenced its subscription interval on Thursday, April 18, concluding on Monday, April 22. Every share was priced at Rs 11, which was on the higher finish of the value band set at Rs 10-11.

Additionally Learn: ‘Contemporary Lease Of Life For Vodafone Concept’: Kumar Mangalam Birla Says After VI’s Rs 18,000 Cr FPO

Vodafone Concept’s (VIL) board has mounted the FPO provide worth at Rs 11 per fairness share, based on a regulatory submitting.

What Ought to Traders Do?

Shivani Nyati, Head of Wealth, Swastika Investmart, mentioned, “Whereas Vodafone Concept’s FPO itemizing round Rs. 12 is a modest enhance from the problem worth, it displays preliminary promoting strain for short-term positive aspects. Nevertheless, a drop beneath Rs. 11 appears unlikely given the corporate’s turnaround potential. Optimistic indicators and potential post-election tariff hikes may set off contemporary shopping for after this preliminary volatility. Aggressive traders with a long-term view would possibly take into account holding onto the inventory, aiming for a possible rise in direction of Rs. 18 sooner or later.”

“We stay cautious concerning the short-term prospects of the corporate and advise traders with average to excessive threat urge for food to play this story from a turnaround perspective as we imagine that it will take few quarters for the corporate to enhance its competitiveness within the close to duopoly Indian telecom market,” Manish Chowdhury, head of analysis at StoxBox, mentioned.

Amit Goel, co-founder and chief world strategist at Tempo 360 suggests traders to park average funds for the long run and add on post-listing at decrease ranges to common out the funding with a long-term funding technique.

Debt-laden telecom operator has raised Rs 18,000 crore pulling off India’s largest-ever follow-on public providing (FPO) as the problem acquired subscribed practically seven instances after institutional traders poured in cash, inventory trade information confirmed on Monday night.

Earlier than this, the biggest FPO within the Indian market was a Rs 15,000 crore share sale by YES Financial institution in 2020.

The fundraise would give the ailing telco the firepower to enhance its positioning within the Indian telecom market, the place it at the moment trails bigger rivals reminiscent of Reliance Jio and Bharti Airtel, by a large margin.

The funds may also assist Vodafone Concept shore up funds for the much-delayed 5G roll-out and strengthening 4G companies, and fee of vendor dues.

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