Shares of Vodafone Idea, a leading telecom service provider, witnessed a notable surge of over 4% in early trading today. The rise comes on the back of an uptick in the Grey Market Premium (GMP) for the company’s ongoing Follow-on Public Offer (FPO). Market observers report that the Grey Market Premium for Vodafone Idea FPO has increased to ₹1.50 per share, marking a 50% rise compared to the previous day’s GMP of Re 1.
Vodafone Idea FPO Details
Vodafone Idea’s Follow-on Public Offer, which commenced today, aims to remain open until April 22, 2024. The FPO has been priced in the range of ₹10 to ₹11 per equity share, positioning it slightly below the closing price of Vodafone Idea shares from the previous trading day. The company intends to utilize the net proceeds from the FPO for expanding its capacity and addressing debt obligations, as outlined in its Red Herring prospectus.
Market Performance and Share Price Outlook
Ahead of the FPO launch, Vodafone Idea’s share price exhibited positive momentum, opening at ₹13.10 per share on the National Stock Exchange (NSE). The intraday trading session saw the stock reach a high of ₹13.50 per share, reflecting a robust intraday gain of over 4% compared to the previous day’s closing price of ₹12.95 per share. Analysts anticipate further upward movement in the stock price, with a price target of ₹16 per share, contingent upon breaching the resistance level at ₹14.50 per share.
Subscription Status and Offer Details
As of midday on the first day of bidding, Vodafone Idea’s FPO has garnered subscription figures of 0.02 times for both the overall issue and the retail portion. The Non-Institutional Investor (NII) category has seen a subscription of 0.04 times. Notably, the FPO offers 16,363,636,363 fresh Vodafone shares, aiming to raise ₹18,000 crore in total. Investors can apply for shares in lots, with one lot comprising 1298 company shares.
Key Dates and Listing Information
The allotment of shares for the Vodafone Idea FPO is slated to be finalized by April 23, 2024. Link Intime India Private Ltd has been appointed as the registrar for the public offer. The FPO is proposed for listing on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). In adherence to the T+3 listing rule, the fresh Vodafone Idea shares are expected to commence trading on April 25, 2024.
The surge in Vodafone Idea’s share prices, coupled with the increased Grey Market Premium, indicates positive market sentiment towards the ongoing Follow-on Public Offer. As investors evaluate the offer, the pricing dynamics and subscription status provide valuable insights into the market’s perception of the company’s prospects. With the FPO offering an opportunity to participate in Vodafone Idea’s growth trajectory, investors must conduct thorough due diligence before making investment decisions.
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