Vodafone Idea Gains Momentum as Board Gears Up to Deliberate Fundraising Options

Stock market today: Vodafone Idea shares witnessed strong buying interest among the Indian stock market bulls. After the announcement of the board meeting on 27th February 2024 to discuss fundraising, Vodafone Idea shares attracted the attention of Dalal Street bulls in early morning deals and opened with an upside gap. The telecom stock went on to touch an intraday high of ₹17.75 apiece on NSE, logging an intraday gain of 9 percent against its previous close of ₹16.30 per share.





In the last five days, the company’s stock has risen almost 10% and nearly 2.3 times in the last six months. The stock has climbed almost 165% in the past year. However, it has erased 1.7% wealth of investors in the last five years.


Vodafone Idea share price target

Expecting further upside in Vodafone Idea shares, Sumeet Bagadia, executive Director at Choice Broking said, “Vodafone Idea share is looking positive on chart pattern. Shareholders of the company are advised to hold the stock maintaining a stop loss at ₹16 apiece level for the immediate target of ₹18.50 per share. They may go up to ₹21 per share level after sustaining above ₹18.50 level."

On the suggestion to fresh investors, Sumeet Bagadia said, “Fresh investors can maintain buy on dips strategy maintaining stop loss at ₹16 per share level. They should hold the stock for the above-mentioned targets of ₹18.50 and ₹21 per share level."


Vodafone Idea news

Vodafone Idea informed Indian exchanges on Thursday about the fundraise move saying, "Pursuant to applicable regulations of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘Listing Regulations’), we wish to inform you that a meeting of the Board of Directors of Vodafone Idea Limited (“the Company") will be held on Tuesday i.e. 27th February, 2024, inter alia, to consider and evaluate any and all proposals for raising of funds in one or more tranches by way of a rights issue, further public offer, private placement including preferential allotment, qualified institutions placement or through any other permissible mode.

The company can raise funds through “…by way of issue of equity shares or by way of issue of any instruments or securities including securities convertible into equity shares, Global Depository Receipts, American Depository Receipts or bonds including foreign currency convertible bonds, convertible debentures, warrants, and/or non-convertible debentures including non-convertible debentures along with warrants, which may or may not be listed,” the company said in the filing.

Conclusion

To compare the benchmark index over the same period. The 50-stock index Nifty 50 has risen 0.8% in the last five days and nearly 15% in the last six months. In the long term, the index has risen over 27% in the past year and almost 105% in the past five years.