Vodafone Idea share price opens with 7.27% premium at ₹11.80 on NSE; trading halted for few minutes, now resumed
- Vodafone Idea share price opened at ₹11.80 per share, 7.27% higher on NSE than the issue price of ₹11. On BSE, Vodafone Idea FPO share price today opened at ₹12 apiece, up 9% than the issue price.
Vodafone Idea share price opened at ₹11.80 per share, 7.27% higher on NSE than the issue price of ₹11. On BSE, Vodafone Idea FPO share price today opened at ₹12 apiece, up 9% than the issue price.
According to a report by CNBC TV18, a technical issue with the trading system caused Vodafone Idea shares to be suspended for a short while on Thursday, April 25, at around 10 am.
Additionally, sources told CNBC-TV18 that the pending orders were also cancelled.
On Wednesday, Vodafone Idea share price closed 9.03% lower at ₹13.10 apiece on the NSE.
The third-largest telecom provider in the country, Vodafone Idea, began subscriptions on Thursday, April 18, and ended on Monday, April 22. The final offering price for each share was determined to be ₹11—the upper end of the price band of ₹10-11.
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Vodafone Idea FPO garnered ₹18,000 crore in India's largest-ever FPO, with the issue being subscribed nearly seven times over after institutional investors flooded the market with funds. Non-institutional investors subscribedfor 4.54 times the shares set aside for them, while qualified institutional buyers sought 19.31 times the shares. The largest portion of the shares were offered to retail investors, who bid somewhat more than that amount.
Promoter Kumar Mangalam Birla, who's a Chairman of the multinational Aditya Birla Group, said during the listing ceremony that the emphatic oversubscription of the view, with the overall book being subscribed to seven times and the institutional book being subscribed to 19 times, demonstrates the tremendous potential of the India digital story and Vodafone's role in it. It is encouraging to see strong participation from both domestic and foreign investors. Notably, it is extremely impressive that the retail component was fully subscribed to.
Birla said that the Aditya Birla group had along side Vodafone Group invested ₹170,000 crore in the Indian telecom industry. Before this IPO, over the last 5 years, out of ₹30,000 crore raised by the company, more than 75% has come from the 2 promoter groups,” Birla said.
The proceeds from the fundraise are earmarked for a significant capex. "This growth capex will pave the way for a network and technological upgrade,” Birla said.
The group put in ₹2,500 crore in the FPO. Birla hoped that the fundraise would usher in “vodafone idea 2.0” and help Vodafone Idea “stage a smart comeback”. Following this fundraise, Vodafone is also in talks to raise around ₹25,000 crore debt from banks.
Here's what expert says
Vodafone Idea's FPO listing at about ₹12 is a slight rise from the issue price, but it represents early selling pressure for quick profits, said Shivani Nyati, Head of Wealth, Swastika Investmart.
Given the company's potential for recovery, a decline below ₹11 appears improbable. After this early volatility, encouraging signals and prospective tariff increases following the election may spur more purchases. Investors that are aggressive and have a long-term perspective may choose to hang onto the stock in anticipation of a future increase to about ₹18, advised Nyati.
Vodafone Idea FPO GMP today
Vodafone Idea FPO GMP or grey market premium is ₹1.40. The fresh shares being issued under the FPO will likely be listed at ₹12.4, representing a gain of 12.73% over the upper limit of the price band, according to investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
(Ranjani Raghavan, Senior Editor has contributed to this story).
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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