Vodafone Idea LATEST update : stock price, target
UPDATE : 5/23/24 kuckad news.com
Vodafone Idea’s tariff hikes, capex acceleration and resultant higher incremental market share will be key to its stock performance going ahead. For now, brokerages largely have price targets in the range of Rs 13-15 on the stock.
ICICI Securities has tweaked its Ebitda estimates for FY25-27 and maintained its target price of Rs 13 for Vodafone Idea.
Vodafone Idea stock: Capital raise has provided some breather to Vodafone idea, as the long-pending capex and continuous subscriber churn have been affecting its operating performance.Vodafone Idea’s tariff hikes, capex acceleration and resultant higher incremental market share will be key to its stock performance going ahead. For now, brokerages largely have price targets in the range of Rs 13-15 on the stock.
ICICI Securities has tweaked its Ebitda estimates for FY25-27 and maintained its target price of Rs 13 for Vodafone Idea.
The brokearge said it had modest expectations for Vodafone Idea’s Q4FY24 results, as the telecom operator was struggling from funding gap that limited its ability to invest in growth, while competitors were aggressively adding capacity and capability.
VIL has successfully raised Rs 21,500 crore in equity and expects debt funding of Rs 25,000 crore, which ICICI Securities said should help the company invest Rs 50,000-55,000 crore in network for the next three years.
“It believes it can start growing again with fair share of subscriber addition as it plugs 4G coverage gap, and starts adding more data capacity through 4G and 5G expansion,” ICICI Securities said.
Nomura India said the 4G network rollout may conclude within 15 months and the 5G rollout should commence in six months. It has upgraded the Vodafone Idea Ltd stock to ‘Neutral’ on an improving outlook following the conclusion of its fund raise.
Update: kuckad news.com
Vodafone Idea FPO oversubscribed 4x on Day 3, driven by QIB push; subscription ends today:
By the final day of bidding, Vodafone Idea’s follow-on public offering (FPO) had garnered full subscription, buoyed by institutional and HNI investor interest. The FPO witnessed a 29% subscription on day one, escalating to 54% by the end of the second day.
Vodafone Idea, the telecom operator, is offering its shares at Rs 10-11 each, with a minimum application size of 1,298 shares and multiples thereafter. The FPO, amounting to Rs 18,000 crore, entails a fresh sale of 16,363,636,363 equity shares, marking it as the largest follow-on offer in the Indian market.
As of 3:00 PM on Monday, April 22, investor bids totaled 3.97 times the offered 12,60,00,00,001 equity shares. The bidding, initiated on Thursday, April 18, concludes today.
The qualified institutional bidders (QIBs) segment attracted bids 10.42 times its allocation, while non-institutional investors subscribed 3.17 times. However, the retail investor portion saw a subscription of only 63% by the same time.
Established in March 1995, Vodafone Idea is a prominent telecommunications provider offering a range of services encompassing voice, data, and value-added services across 2G, 3G, and 4G technologies. These services cater to both enterprises and consumers, including digital solutions such as short messaging.
The grey market premium for Vodafone Idea’s shares currently stands at a modest Rs 0.50, indicating a potential listing pop of 4-5% for investors. While the premium was Rs 0.60 over the weekend, it reached around Rs 1.50 on the first day of bidding.
Brokerage firms are largely optimistic about Vodafone Idea’s future, citing anticipated tariff hikes, growth in average revenue per user (ARPU), capacity expansion, and debt reduction strategies. Analysts believe the capital raised will aid the company amidst its financial challenges, though they stress the importance of user base growth and successful execution of revival plans.
The follow-on public offering (FPO) is seen as a strategic move to bolster Vodafone Idea’s competitiveness in India’s telecom market, which is dominated by a near duopoly. Manish Chowdhury, Head of Research at StoxBox, highlights the company’s focus on improving 4G penetration and introducing 5G services in the near future to boost ARPU.
Vodafone Idea has allocated 50% of the offering to qualified institutional investors (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors. The company has already secured Rs 5,400 crore from various institutional investors through an anchor book.
Despite near-term risks such as ongoing losses and subscriber attrition, particularly due to lagging 4G expansion compared to competitors, Geojit Financial Services considers Vodafone Idea a high-risk investment in the short to medium term. However, they maintain a subscribe rating for high-risk investors based on the company’s long-term potential, particularly with strong parentage support.
Axis Capital, Jefferies India, and SBI Capital Markets serve as the book running lead managers for the Vodafone FPO, with Link Intime India acting as the registrar. The FPO shares are scheduled to be listed on both BSE and NSE on Thursday, April 25, 2024.
Unlocking Opportunities: A Comprehensive Guide to Vodafone Idea’s FPO
Introduction: In the ever-evolving landscape of telecommunications, Vodafone Idea’s Follow-On Public Offering (FPO) emerges as a beacon of potential. As investors seek avenues for growth, understanding the nuances of this offering becomes paramount. Let’s delve into the depths of Vodafone Idea’s FPO journey, unlocking the doors to lucrative opportunities.
Unveiling Vodafone Idea’s FPO:
Amidst the dynamic realm of investments, Vodafone Idea’s FPO stands out as a catalyst for financial growth. With a focus keyword of “Vodafone Idea FPO”, this offering beckons investors with promises of substantial returns and strategic advancements. But what exactly does this entail?
Exploring the Landscape:
Vodafone Idea, a stalwart in telecommunications, unveils its FPO, signaling a pivotal moment in its trajectory. Leveraging its rich legacy since March 1995, the company offers a diverse portfolio of services spanning voice, data, and value-added solutions across 2G, 3G, and 4G technologies. This expansive reach positions Vodafone Idea as a formidable player in the market.
The Journey to Oversubscription:
As the FPO journey unfolds, it’s evident that investor interest is palpable. With a staggering 4x oversubscription witnessed on Day 3, driven by a concerted push from Qualified Institutional Buyers (QIBs), the momentum is undeniable. Such fervent demand underscores the allure of Vodafone Idea’s offerings and the confidence it instills in investors.
Seizing Opportunities:
For investors, the allure lies not just in the present but in the future prospects that Vodafone Idea’s FPO promises. Power-packed with potential, this offering opens doors to avenues of growth and prosperity. It’s not merely an investment; it’s a strategic move towards financial empowerment and market dominance.
Unraveling the Benefits:
1. Growth Potential: With the telecom industry poised for exponential growth, Vodafone Idea’s FPO emerges as a gateway to tap into this lucrative market. Power up your portfolio with a stake in a company poised for expansion and innovation.
2. Strategic Advancements: Vodafone Idea’s FPO isn’t just about numbers; it’s about strategic maneuvers that propel the company forward. From capacity expansion to debt reduction strategies, each step is meticulously crafted to maximize returns and solidify market presence.
3. Investor Confidence: As analysts echo positive sentiments surrounding Vodafone Idea’s FPO, investor confidence soars. With anticipated tariff hikes, ARPU growth, and robust execution plans, the stage is set for a transformative journey towards profitability.
Navigating the Investment Landscape:
1. Seize the Moment: The time is now to capitalize on Vodafone Idea’s FPO. Don’t wait for opportunities to pass by; seize them with conviction and foresight.
2. Diversify Your Portfolio: In the quest for financial stability, diversification is key. Vodafone Idea’s FPO offers a unique opportunity to diversify your investment portfolio and mitigate risks.
3. Embrace Growth: Embrace the spirit of growth and innovation embodied by Vodafone Idea’s FPO. By aligning your investments with forward-thinking companies, you pave the way for long-term prosperity.
Conclusion: In the dynamic world of investments, Vodafone Idea’s FPO stands as a testament to resilience and potential. With a focus keyword strategically embedded, this blog not only serves as a guide but as a beacon of opportunity for investors seeking to unlock the doors to financial prosperity. As the journey unfolds, seize the moment, embrace growth, and embark on a transformative investment voyage with Vodafone Idea’s FPO.
