Vodafone Idea share price jumps 10% as focus shifts on FPO allotment, listing date

livemint.com:

Vodafone Idea share price: After the end of bidding for the Vodafone Idea FPO (Follow-on Public Offer) on Monday, Vodafone Idea share price today witnessed strong buying that lifted the telecom stock to the tune of 10 percent during Tuesday deals. Vodafone shares today opened upside at ₹13 apiece to touch an intraday high of ₹14.75 per share.

However, the stock retraced from its intraday high and it current quoting around ₹14.30, logging around a 10 percent rise against its Monday's close of ₹12.90 on NSE. According to stock market experts, Vodafone shares are rising on the short-term sentiment regarding the Vodafone Idea FPO subscription status.

They said that the FPO was able to get fully subscribed after a strong response by the global institutional investors. As the company has managed to generate the amount it was targeting, short-term investors are looking positively towards the Vodafone Idea shares after this development.

speaking on the reason for the rally in Vodafone Idea share price, Manish Chowdhury, Head of Research at StoxBox said, “An uptick in Vodafone Idea share price today can be attributed to the strong response to the ₹18,000 crores FPO which closed for subscribers yesterday. Vodafone Idea FPO received a strong response from global institutional investors, which has gone down well among Dalal Street bulls.

We believe that investors are becoming increasingly confident about the turnaround prospects of the company going ahead. We believe that the company’s focus on 5G rollout, upgradation of 2G sites to 4G sites, and the recent promoter fund infusion are key positives generating market interest currently." On the outlook for Vodafone Idea shares, Sumeet Bagadia, Executive Director at Choice Broking