Vodafone Idea FPO: Shares jump 4% after rise in GMP. Should you apply?

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Vodafone Idea FPO: The Follow-on Public Offer (FPO) of Vodafone Idea Ltd is going to hit the primary market today. The Vodafone Idea FPO will remain open till 22nd April 2024. The telecom company has fixed the Vodafone Idea FPO price band at ₹10 to ₹11 per equity share, which is around ₹2 below Tuesday’s Vodafone Idea share price closing. According to stock market observers, Vodafone Idea FPO shares are trading at a premium of ₹1.50 per share in the grey market today. This means Vodafone Idea FPO GMP today is ₹1.50. The net proceeds of Vodafone Idea FPO will be used for capacity expansion of the company and payments of debt and other dues, the telecom company claims in its Red Herring prospectus (RHP)

Vodafone Idea share price today

Meanwhile, ahead of the Vodafone Idea FPO opening on Thursday, Vodafone Idea share price today opned upside at ₹13.10 apiece on NSE and went on to touch an intraday high of ₹13.50 per share level within a few minutes of stock market’s opening bell, logging more than 4 percent intraday rise against Tuesday’s  close of ₹12.95 apiece.

Vodafone Idea share price target

Speaking on the outlook for Vodafone Idea shares, Sumeet Bagadia, Executive Director at Choice Broking said, “Vodafone Idea shareholders are advised to hold the scrip maintaining stop loss at ₹11 (upper price band of Vodafone Idea FPO). The scrip may touch 16 per share levels, onece it manages to breach the current resistance placed at ₹14.50 apiece.”

Vodafone Idea FPO subscription status

By 11:54 AM on day one of bidding, the follow-on issue has been subscribed 0.02 times whereas the retail portion of the FPO has  been booked 0.02 times. The NII portion was booked 0.04 times.

Important Vodafone Idea FPO details

1] Vodafone Idea FPO GMP today: Vodafone Idea FPO grey market premium (GMP) today is ₹1.50, which is ₹0.50 higher than Tuesday’s Vodafone Idea FPO GMP of Re 1, say market observers.

2] Vodafone Idea FPO price: The telecom company has fixed Vodafone Idea FPO price at ₹10 to ₹11 per share.

3] Vodafone Idea FPO date: The Follow-on Public Offer has opened today and it will remain open till Monday next week.

4] Vodafone Idea FPO size: The telecom company aims to generate ₹18,000 crore through the issuance of 16,363,636,363 fresh Vodafone shares.

5] Vodafone Idea FPO lot size: A bidder will be able to apply in lots and one lot of the FPO comprises 1298 company shares.

6] Vodafone Idea FPO allotment date: The finalization of share allocation is most likely on 23rd April 2024.

7] Vodafone Idea FPO Registrar: Link Intime India Private Ltd has been appointed as the official registrar of the public offer.

8] Vodafone Idea FPO listing: The Follow-on Public Offer is proposed for listing on BSE and NSE.

9] Vodafone Idea FPO listing date: In the wake of the T+3 listing rule for mainboard public offers, the fresh Vodafone Idea shares may list on 25th April 2024.

Vodafone Idea FPO: Should you buy?

10] Vodafone Idea FPO review: Giving a ‘buy’ tag to the Vodafone Idea FPO, Arun Kejriwal, Founder of Kejriwal Research and Investment Services said, “One should apply to the Vodafone Idea FPO for these four reasons — 1] The offer has been made at a handsome 20 percent premium against the current Vodafone Idea share price; 2] Government of India is strongly standing behind the company as they don’t want to give monopoly to two companies in such a big telecom industry in India; 3] The telecom company has not done any CAPEX in the last four too five years. The net proceeds of the Vodafone Idea FPO may enable the company to work on its CAPEX, and 4] The anchor book of the Vodafone Idea FPO signals that some serious kind of investors are coming on board with the Vodafone Idea.”

Kejriwal said that one can apply for the Vodafone Idea FPO for listing gains as well as for the medium to long-term gains.

Prashant Tapse, Senior VP — Research at Mehta Equities has also given a ‘subscribe’ tag to the Vodafone Idea FPO saying, “If fully subscribed, Vodafone Idea FPO will be the largest FPO in history, surpassing the ₹15,000 crore Yes Bank and ₹10,542 crore ONGC offers.”

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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Pooja Gupta

CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, M.com) having 15 years of experience. Educator and Digital Creator

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