Vodafone Idea FPO Update:NSE Opening Price: ₹11.80 (+7.27% from issue price).
BSE Opening Price: ₹12.00 (+9% from issue price).
Subscription Period: April 18 – April 22.
Issue Price: ₹11 (upper end of the price band ₹10-11.
As an investor, it’s important to consider your strategy with Vodafone Idea’s FPO offer price set at Rs 11 per equity share. According to Shivani Nyati from Swastika Investmart, while the initial increase to around Rs. 12 might invite short-term selling pressure, there could be potential for a rise in the long term due to the company’s turnaround prospects.
There may be volatility initially, but positive signs and potential tariff hikes post-election could lead to renewed interest in the stock. For aggressive investors with a long-term perspective, holding onto the stock with a target of around Rs. 18 in the future could be an option to consider.
StoxBox’s head of research, Manish Chowdhury, is cautious about the company’s short-term outlook and recommends that investors with moderate to high risk tolerance consider the company as a turnaround opportunity. He believes it may take a few quarters for the company to enhance its competitiveness in the Indian telecom market, which is currently dominated by two major players.
On the other hand, Amit Goel, the co-founder and chief global strategist at Pace 360, advises investors to allocate a moderate amount of funds for the long term. He suggests adding more shares at lower prices after the company goes public to balance out the overall investment with a focus on long-term growth.
A heavily indebted telecommunications company has successfully raised Rs 18,000 crore through India’s biggest follow-on public offering (FPO) to date. The offering was subscribed nearly seven times as institutional investors invested a significant amount of money, according to stock exchange data released on Monday evening.
Prior to this, the largest FPO in the Indian market was a Rs 15,000 crore share sale conducted by YES Bank in 2020.
The money raised will help the struggling telecommunications company enhance its position in the Indian market, where it currently lags behind bigger competitors like Reliance Jio and Bharti Airtel by a significant margin. With these funds, Vodafone Idea can improve its financial situation, work on launching 5G services that have been delayed, strengthen its existing 4G services, and pay off debts owed to vendors.