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

Vodafone Idea share price: After the end of bidding for the Vodafone Idea FPO (Follow-on Public Offer) on Monday, Vodafone Idea share price today witnessed strong buying that lifted the telecom stock to the tune of 10 percent during Tuesday deals. Vodafone shares today opened upside at ₹13 apiece to touch an intraday high of ₹14.75 per share. However, the stock retraced from its intraday high and it current quoting around ₹14.30, logging around a 10 percent rise against its Monday's close of ₹12.90 on NSE. According to stock market experts, Vodafone shares are rising on the short-term sentiment regarding the Vodafone Idea FPO subscription status. They said that the FPO was able to get fully subscribed after a strong response by the global institutional investors. As the company has managed to generate the amount it was targeting, short-term investors are looking positively towards the Vodafone Idea shares after this development.

Triggers for Vodafone Idea share

speaking on the reason for the rally in Vodafone Idea share price, Manish Chowdhury, Head of Research at StoxBox said, “An uptick in Vodafone Idea share price today can be attributed to the strong response to the ₹18,000 crores FPO which closed for subscribers yesterday. Vodafone Idea FPO received a strong response from global institutional investors, which has gone down well among Dalal Street bulls. We believe that investors are becoming increasingly confident about the turnaround prospects of the company going ahead. We believe that the company’s focus on 5G rollout, upgradation of 2G sites to 4G sites, and the recent promoter fund infusion are key positives generating market interest currently.”

Vodafone Idea share price target

On the outlook for Vodafone Idea shares, Sumeet Bagadia, Executive Director at Choice Broking said, "Vodafone Idea shares are on the cusp of a fresh breakout at ₹14.30 apiece. If the stock gives a breakout above ₹14.30 apiece on a closing basis, then we can expect Vodafone Idea shares to touch ₹17 to ₹18 apiece levels in the short term. Hence, Vodafone Idea shareholders are advised to maintain a stop loss at ₹11 till the stock is below ₹14.50. Once Vodafone shares closed above ₹14.30 per share level, one should upgrade the stop loss at ₹12.50 apiece and wait for the short-term, target of ₹17 to ₹18 apiece level."

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

On the suggestion to fresh investors, Sumeet Bagadia said that fresh investment is not advisable at current levels. One should either wait for the breakout to happen or for correction from current levels.

"In case of breakout at ₹14.30 apiece level, a fresh investor can buy Vodafone Idea shares or the short-term target of ₹17 to ₹18. However, one must maintain the stop loss at ₹12.50 per share level while taking any position this telecom scrip post-breakout," said Bagadia.

Vodafone Idea FPO details

Bidding for the Vodafone Idea FPO closed on Wednesday. As per the Vodafone Idea FPO subscription status, the follow-on public offer received over 6 times a subscription where the QIB portion got subscribed over 17 times and the NII portion got booked over 4 times. Now focus has shifted to Vodafone Idea FPO allotment date and listing date. Vodafone Idea FPO allotment is expected today whereas Vodafone Idea FPO listing is expected on 25th April 2024. As per the market observers, Vodafone Idea FPO GMP today is ₹1.20, which is ₹0.10 lower than Monday's GMP of ₹1.30.

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.