Vodafone Idea shares have gained over 18 percent in the last six months.
Shares of Vodafone Idea Ltd extended morning gains, and traded as much as 25 percent above the FPO allotment price in the morning of April 25. The stock rose to an intraday high of Rs 13.75 in the morning trade, up from the FPO price of Rs 11 per share, after the FPO shares listed on the bourses today.
Vodafone Idea stock has slipped more than 21 percent since January this year.
The Aditya Birla Group company raised Rs 18,000 crore in India's largest ever FPO so far, after securing a substantial investment from institutional investors.
"We remain wary about the short-term prospects of the company and advise investors with moderate to high risk appetite to play this story from a turnaround perspective as we believe that it would take few quarters for the company to improve its competitiveness in the near duopoly Indian telecom market," Manish Chowdhury, head of research at StoxBox, said.
Amit Goel, co-founder and chief global strategist at Pace 360 suggests investors to park moderate funds for the long term and add on post-listing at lower levels to average out the investment with a long-term investment strategy.
The company's FPO was subscribed 6.36 times, the final day of bidding, with investors bidding for 8,011.8 crore equity shares, subscription data from exchanges showed.
QIBs or qualified institutional buyers were at the forefront, subscribing 17.56 times the portion reserved for them. Non-institutional investors purchased 4.13 times their allotted quota of shares reserved, while the retail portion was fully subscribed.
Vodafone Idea will spend Rs 12,750 crore of the net issue proceeds for the expansion of the network infrastructure by setting up new 4G and 5G sites and the expanding the capacity of existing 4G sites.
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