Vodafone Idea FPO’s anchor investors’ lock in period ends; experts upbeat!

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Vodafone Idea FPO’s anchor investors’ lock-in period of 30 days ended on Monday, May 27, 2024. The scrip closed less than one per cent in red at Rs 15 apiece on the BSE. The prominent qualified institutional buyers (QIBs) of the Rs 18,000 crore was FPO, brought on April 18, 2024, were GQG Partners, Morgan Stanley, HDFC Mutual Fund, Motilal Oswal, SBI General Insurance. The US based GQG Partners which had invested heavily in Adani Group companies during Hindenburg turmoil, were allotted maximum shares in Vodafone’s FPO as well. The FPO shares were listed on April 25, 2024.

Analysts’ Views:

Prashanth Tapse, Research Analyst, Senior Vice-President of Research at Mehta Equities, told business daily, ‘Mint’ “as per the monthly charts, the Vodafone Idea share price has been forming a base around the 10.50–11.75 level and is also seen to be breaking out above its important resistance mark of 14.05, successfully managing to close above the same. Overhead resistance lies near 18.40 and 20.00–22.00 levels, which should be the potential targets for the stock within the next 1 year. Any pullback down towards 14–14.50 should offer a good buying opportunity now on the stock.”

Tapse further added that his trading firm doesn’t expect the stock to come under any selling pressure.

While, Mohit Gulati, CIO & Managing Partner of ITI Growth Opportunities Fund, said the stock is bolstered by a solid anchor list of long-term investors, which significantly reduces selling pressure. With a clear 12 rupee bottom, it’s not far-fetched to anticipate Vi reaching the 18–20 levels in the near future.

Overall experts were optimistic on VI’s share price performance going forward.

How was VI’s FPO response?

The cash-strapped telecom’s FPO was a success. It was fully subscribed. The FPO shares got listed at 7-9 per cent premium on the exchanges at around Rs 12 apiece. The FPO issue price was Rs 11. 30 per cent of the FPO was reserved for anchor investors which subscribed shares worth Rs 5,400 crore in the offer.