Vodafone Idea’s (Vi) ₹18,000-crore follow-on public offering’s (FPO) anchor 30-day lock-in period is set to expire today (Monday, May 27). Historically, as the anchor lock-in term is coming to a close, there has been selling pressure on business share prices. Vodafone Idea’s share price, which closed 7.54% higher at ₹15.11 per share on Friday’s BSE trading session, may face selling pressure on Monday’s trade.
According to monthly charts, the Vodafone Idea share price has been forming a base around the 10.50–11.75 level and has broken out above its important resistance mark of 14.05, successfully closing above it. The Vodafone Idea share price faces overhead resistance near the 18.40 and 20.00–22.00 levels. These resistance levels should be considered as potential targets for the stock within the next year, provided the company continues to perform well and execute its growth strategies effectively.It is important to note that stock prices can be volatile and subject to various market conditions and company-specific factors. Investors should conduct their own research, consult with financial advisors, and consider their risk appetite before making investment decisions. Any pullback down towards 14–14.50 could offer a good buying opportunity on the stock, said Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities.
Vodafone Idea’s FPO shares opened with a 7.27% premium at ₹11.80 on NSE and debuted at ₹12 apiece on BSE, up 9% from the issue price of ₹11. Since its FPO shares listing, Vodafone Idea’s share price has gained over 9%.
“On listing, it generated healthy returns for all the investors. The post-FPO success of Vi is in the limelight, as they got what they needed to improve operation as well as launch 4G services and get into competition with peers,” said Tapse.
Vodafone Idea successfully raised approximately ₹5,400 crore from anchor investors through its follow-on public offering (FPO) on April 17. The anchor investors included prominent names such as Australian Super, GQG Partners, Fidelity Investments, UBS Fund Management, and Jupiter Fund Management.
In addition to these international investors, several domestic investors also participated in the FPO. These domestic investors included SBI General Insurance, Motilal Oswal, Indian Infoline, HDFC Mutual Fund, and Quant.
GQG Partners, the US-based investor, has been allotted the most number of shares, valued at ₹1,345 crore, while Fidelity Investments contributed around ₹772 crore to Vodafone Idea’s FPO. Out of all the shares, five domestic mutual funds were allocated 16.20%, or ₹874 crore, of which ₹500 crore was invested by Motilal Oswal Midcap Fund.
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