The share price of Vodafone Idea saw a positive opening on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), trading at ₹11.80 and ₹12 respectively, which marked increases of 7.27% and 9% respectively over the issue price of ₹11 per share.
However, on the preceding Wednesday, Vodafone Idea’s share price closed lower at ₹13.10 on the NSE, reflecting a decrease of 9.03%.
Vodafone Idea, the third-largest telecom provider in India, commenced its FPO subscription on Thursday, April 18, and concluded on Monday, April 22. The final offering price was set at ₹11 per share, which was at the upper end of the price band of ₹10-11. The FPO generated ₹18,000 crore, making it India’s largest-ever FPO.
Institutional investors heavily subscribed to the offering, with the overall subscription reaching nearly seven times. Non-institutional investors subscribed 4.54 times, while qualified institutional buyers sought 19.31 times the shares allocated to them. Retail investors also showed significant interest, bidding slightly more than the allotted shares.
During the listing ceremony, Promoter Kumar Mangalam Birla, Chairman of the multinational Aditya Birla Group, expressed satisfaction with the overwhelming subscription, emphasizing the potential of the Indian digital landscape and Vodafone’s role within it. He noted the strong participation from domestic and foreign investors, highlighting the full subscription of the retail component.
Vodafone Idea’s FPO listing at around ₹12 represents a modest increase from the issue price. However, Shivani Nyati, Head of Wealth at Swastika Investmart, suggests that this could indicate early selling pressure for quick profits.
Nyati believes that a decline below ₹11 is unlikely given the company’s recovery potential. She advises investors with an aggressive and long-term perspective to hold onto the stock, anticipating a potential future increase to around ₹18.
The Grey Market Premium (GMP) for Vodafone Idea’s FPO is currently ₹1.40. This indicates investors’ willingness to pay more than the issue price for the company’s shares. Additionally, it is projected that the fresh shares 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.
