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Business News/ Markets / Stock Markets/  Vodafone Idea share price opens with 7.27% premium at 11.80 on NSE; trading halted for few minutes, now resumed
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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 lists on the bourses today.Premium
Vodafone Idea share price lists on the bourses today.

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.

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

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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.

Also Read: Vodafone Idea FPO allotment finalised; share price, latest GMP, 6 steps to check status

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.

Also Read: Vodafone Idea's 18,000-crore FPO subscribed more than 6 times, led by QIBs

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).

Also Read: Vodafone Idea share price jumps 10% as focus shifts on FPO allotment, listing date

Vodafone Idea FPO details.
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Vodafone Idea FPO details.

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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Published: 25 Apr 2024, 09:18 AM IST
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