Strong FPO Subscription Drives 7% Increase in Vodafone Idea Shares; Details; GMP Hints at Premium Shares
On Tuesday, Vodafone Idea Ltd.’s share prices saw a reversal, ending a two-day losing run and rising more than 7% in trading. This increase followed its much anticipated follow-on public offer (FPO), which over the course of three days attracted strong subscription rates totaling Rs 18,000 crore.
Touted as the biggest in India, the FPO closed on Monday night with a 6.99x total subscription. A noteworthy entire subscription number of 1.01x was seen in the retail category, indicating substantial investor interest from individual investors.
With a subscription rate of 19.3x, institutional bidders, or the Qualified Institutional Buyer (QIB) category, showed interest. In a similar vein, there was strong demand for the non-institutional segment, which concluded with a 4.54x subscription rate.
The FPO’s accomplishment now creates the framework for Vodafone Idea to secure a significant amount of bank funding, believed to be around Rs 25,000 crore. This cash infusion gives the company’s development ambitions much-needed momentum, especially when it comes to strengthening its 4G and 5G infrastructure. Furthermore, Vodafone Idea’s recent losses in subscriber share are about to stop thanks to these initiatives.
Technically speaking, the stock has been resilient, often finding support around its 200-Day Moving Average, which is now trading at Rs 12.3 per share. This level has proven to be crucial, especially in light of the recent fall in the market. The stock’s 50-day moving average is now at Rs. 14.05, while its 100-day moving average is at Rs. 14.28 per share. The Relative Strength Index (RSI), which is now at 53, shows that investor sentiment is neutral.
Shares of Vodafone Idea were up about 7% as of 11:15 a.m. on the National Stock Exchange (NSE), trading for Rs 13.80 a share. Even if the stock fell 15% in 2024, it had seen an incredible 120% increase in the previous year.
In addition to demonstrating investor trust, Vodafone Idea’s FPO performance marks a critical turning point in the company’s journey toward both financial stability and a market comeback.
