Vodafone Idea Shares Rise After Anchor Investors Infuse Rs 5,400 Crore In FPO
The company allotted 490.9 crore shares at Rs 11 apiece to 74 anchor investors, including GQG Partners, Fidelity Investments, Australian Super, UBS Fund Management, and Redwheel Fund.
Shares of Vodafone Idea Ltd. rose over 4% on Thursday after the cash-strapped telecom firm mopped up close to Rs 5,400 crore from anchor investors ahead of its follow-on public offer. The FPO opens for retail investors on Thursday and will close on April 22.
The anchor investors include GQG Partners, Fidelity Investments, Australian Super, UBS Fund Management, and Redwheel Fund, among others.
The telecom major allotted 490.9 crore shares at Rs 11 apiece to 74 anchor investors.
GQG Partners, through its various funds, got the highest allocation of nearly 25%. It's a U.S.-based investment company that is involved in the active management of global and emerging market equity portfolios for institutions, advisors, and individuals worldwide.
IIFL Securities has upgraded Vodafone Idea shares' rating to 'add' while also recommending subscribing to the ailing telecom operator's Rs 18,000 crore follow-on public offer.
Shares of the company rose as much as 4.25% to Rs 13.50 apiece. It was trading 3.47% higher at Rs 13.40 apiece as of 09:24 a.m. This compares to a 0.49% advance in the NSE Nifty 50 Index.
The stock has risen 121.49% in 12 months. The relative strength index was at 49.51
Out of 17 analysts tracking the company, one maintains a 'buy' rating, three recommend a 'hold', and 13 suggest a 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 45.3%.