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Vodafone Idea FPO shares to debut at bourses

Vodafone Idea FPO shares to debut at bourses on Thursday, stock slumps over 9% ahead of listing; check the latest GMP

Shares allotted in the follow-on public offer of Vodafone Idea will list on the bourses tomorrow (Thursday, April 25). It will be determined if the Vodafone Idea FPO shares have debuted at a premium or discount based on the opening price of Vodafone Idea stock tomorrow. The final issue price has been fixed at ₹11 per share, the upper end of the price band of ₹10-11.

After receiving a hefty infusion of funds from institutional investors, the heavily indebted telecom operator Vodafone Idea Ltd successfully gathered ₹18,000 crore, making it the largest FPO in India ever.

Vodafone Idea FPO shares allotted to investors in the issue on Tuesday, April 23 will be credited to their accounts today (Wednesday, April 24). For those investors who did not get shares, the refund procedure starts today.

Vodafone Idea, the third-biggest telecom provider in the nation, opened for subscription on Thursday, April 18, and ended on Monday, April 22.

According to the red herring prospectus, the company plans to invest ₹12,750 crore of the entire proceeds from the FPO to purchase equipment for the creation of new 5G sites, expanding the capacity of existing 4G sites, and establishing new 4G sites. All of these initiatives will help the company expand its network infrastructure.

The telecom company will use the remaining FPO proceeds for an array of broad business goals, including financing working capital requirements.

With its follow-on public offering earlier this week, Vodafone Idea raised around ₹5,400 crore from anchor investors, which included Jupiter Fund Management, Australian Super, GQG Partners, Fidelity Investments, and UBS Fund Management.

On Wednesday’s session, Vodafone Idea share price closed 9.24% lower at ₹13.06 apiece on BSE.

“The share prior to listing has lost substantial ground and closed at ₹13.10. I belive that the trading range would be narrow as those who panicked have hedged their positions. Considering the response to the issue from QIBs, expect the share to do well. If i had to predict a range it would be 12.75 to 13.60 for the bulk of trading with some aberrations on either side,” said Arun Kejriwal, founder of Kejriwal Research and Investment Services.

According to Rajesh Bhosale – Equity Technical and Derivative Analyst, Angel One, the stock is news due to its FPO and has seen trending moves in the last few sessions. However, ahead of the listing of its FPO, prices have seen most of its gains during the early part of the week. Overall, this counter remains a clear underperformer, and we maintain a view of avoiding aggressive bets on it. Any bounce should be used to exit long positions; 12 is support, and 15 is resistance.

Kapil Shah, Technical Analyst, Emkay Global and Technical Trainer, Finlearn Academy highlighted that Vodafone Idea share price is trading in the range of 12 to 14.5 from past 30 trading sessions. Stock is reacting from the upper band of consolidation to the lower band. Stock can further move down to test support level of 12.85 and 12.5.

Vodafone Idea FPO GMP today

Vodafone Idea FPO GMP or grey market premium is ₹1.75. The fresh shares being issued under the FPO will likely be listed at ₹12.75, representing a gain of 15.91% over the upper limit of the price band, according to investorgain.com.

IPO GMP is heading upward and is expected to have a solid listing based on the actions of the past 13 sessions of the grey market. Analysts at investorgain.com estimate that the lowest GMP is ₹0 and the maximum GMP is ₹2.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

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