Vodafone Idea Shares Surge 10% on FPO Optimism

Vodafone Idea Shares Surge 10% on FPO Optimism (Image: Mint)

VoM News Desk | April 23, 2024 | 03:25 PM IST | Breaking News | Follow on Google News

Vodafone Idea Shares Surge 10% on FPO Optimism

Vodafone Idea Shares Surge 10% on FPO Optimism

Following the closure of bidding for the Vodafone Idea FPO, the telecom giant’s shares experienced a robust buying spree, driving a 10% surge in Tuesday’s trading. Starting at ₹13 per share, the stock peaked at ₹14.75 before settling around ₹14.30, marking a significant increase from Monday’s close of ₹12.90 on the NSE.

Market experts attribute this rally to positive sentiment surrounding the FPO’s subscription status, with global institutional investors showing strong interest. Manish Chowdhury, Head of Research at StoxBox, notes that investor confidence in Vodafone Idea’s turnaround prospects, particularly with its focus on 5G rollout and network upgrades, is fueling market interest.

Looking ahead, Sumeet Bagadia, Executive Director at Choice Broking, suggests a potential breakout for Vodafone Idea shares at ₹14.30 apiece, projecting short-term targets of ₹17 to ₹18. However, he advises caution for new investors, recommending waiting for either a breakout or a correction before entering the market.

As attention shifts to the FPO allotment and listing dates, the Vodafone Idea FPO garnered significant subscription, with the QIB portion oversubscribed over 17 times and the NII portion over 4 times. The FPO’s listing is anticipated on April 25, 2024, with a slight dip in GMP to ₹1.20 from Monday’s ₹1.30.

Source: Mint

VoM News Desk

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