Voda Idea stock jumps 4% as GQG leads strong anchor book demand for FPO

Vodafone Idea FPO raised Rs 5,400 crore from anchor investors, which includes Rs 1,347 crore investments from the US-based GQG Partners.

Vodafone Idea stock price reaction as Rs 18,000 crore FPO opens for subscription: Shares of Vodafone Idea jumped 4.3 per cent to Rs 13.48 in Thursday's intra-day deal, as the telecom's Rs 18,000 crore follow-on public offer (FPO), which opens today for public, received strong response from anchor investors, including the famed GQG Partners.

Voda Idea stock touched a high of Rs 13.48 and a low of Rs 13.08 in trades so far on the BSE. At 09:20 am, Voda Idea stock quoted with a gain of 3.5 per cent at Rs 13.37. Vodafone Idea counter had seen trades of around 138 million shares on the BSE and NSE in the first 5 minutes of trade today.

At present levels, Voda Idea stock is trading 27.3 per cent away from its 52-week high of Rs 18.42, and 122.5 per cent higher when compared to its 52-week low of Rs 6.01 on the BSE.

Vodafone Idea allotted 4.9 billion equity shares to anchor investors at Rs 11 each - i.e. the top end of the FPO price band, thus raising Rs 5,400 crore. As per reports, the demand in the anchor investor category was 2-3 times more than the shares on offer.

A total of 74 schemes received allotments in the anchor category, with US-based GQG Partners subscribing to Rs 1,347 crore worth of shares, nearly a quarter of the available shares in the anchor category. Other large subscribers included Fidelity, Stichting, Redwheel, Motilal Oswal Mutual Fund, and Troo Capital. 

As per reports, GQG is likely to invest around Rs 4,000 crore in the Vodafone Idea FPO. GQG Partners came to limelight on acquiring significant stake in Adani group stocks. That apart, GQG holds notable investments in GMR Airports Infrastructure stock, JSW Energy, IDFC First Bank and Patanjali Ayurved.

Back to the Voda Idea, the FPO opens for public today in the price band of Rs 10 - Rs 11 per share. Investors can place bids for the FPO in multiples of 1,298 equity shares. A total of 12.6 billion shares are on offer for sale, out of which up to 50 per cent (6.3 billion equity shares) are reserved for the HNIs and retail investor’s category. Vodafone Idea FPO closes on Monday, April 22.

After the share sale, the promoter shareholding in Vodafone Idea will decline to 36.87 per cent from present 48.75 per cent, as the entire FPO is fresh issue of equity shares.

The primary objectives of Vodafone Idea FPO includes boosting existing 4G infrastructure, establishing new 4G and 5G sites, and settling certain deferred payments for spectrum to the Department of Telecommunications (DoT), along with associated GST obligations.

Technical outlook on Vodafone Idea stock

Current Price: Rs 13.37

Bias: Range-bound

Support: Rs 12; Rs 11.60

Resistance: Rs 14.35; Rs 14.90

Vodafone Idea stock witnessed a steep price correction of over 36 per cent from its high of Rs 18.40 on February 23, 2024, to a low of Rs 11.75 on March 13, 2024. Post which swift decline, the Voda Idea stock has consolidated in the price band of Rs 12 - Rs 14.35. CLICK HERE FOR THE CHART

In the process, the stock is consistently seen taking support around its 200-DMA (Daily Moving Average) which stands at Rs 12.20, and then testing the higher-end of the anticipated trading band.

The daily chart suggests the Voda Idea stock is expected to be remain range-bound, until a clear breakout takes place.

On the upside, the Voda Idea stock will need to clear resistance at Rs 14.90, in order to turn bullish. Post which, a rally to Rs 17 levels seems feasible for the Vodafone Idea share price. Whereas, on the downside, below Rs 12, the Voda Idea stock has near support at Rs 11.60, break and close below the same, can trigger a fall to Rs 9.80.