Vodafone Idea’s Fundraising Proposal Sends Shares Soaring by 9%

Vodafone Idea‘s shares witnessed strong buying interest among investors in the Indian stock market after the telecom company announced its intention to raise funds. The company’s board has scheduled a meeting on February 27, 2024, to discuss the fundraising proposal, causing a surge in Dalal Street bulls’ enthusiasm.

The stock opened with an upside gap and reached an intraday high of ₹17.75 per share on the National Stock Exchange (NSE), marking a significant 9% increase from the previous closing price of ₹16.30.

During the early morning session, Vodafone Idea’s share price approached its existing 52-week high of ₹18.40, achieved in January of the current year. Experts believe that the positive market response to the funding news is the main driver behind the upward trend in Vodafone Idea’s share price today.

Avinash Gorakshkar, Head of Research at Profitmart Securities, stated that the market reacted positively to the company’s decision to explore fundraising options, such as the impending board meeting. He anticipates continued investor interest in Vodafone Idea shares, projecting a potential rise to ₹21 per share in the short term.

Sumeet Bagadia, Executive Director at Choice Broking, recommended holding the stock with a stop loss at ₹16 per share for an immediate target of ₹18.50 and a potential further rise to ₹21 per share if it can sustain above the ₹18.50 level. Bagadia advised new investors to adopt a ‘buy on dips’ strategy with a stop loss at ₹16 per share.

On Thursday, Vodafone Idea informed stock exchanges about its fundraising plans, disclosing the consideration of various funding avenues, including a rights issue or public share offering. Aditya Birla Group’s Chairman, Kumar Mangalam Birla, affirmed the group’s commitment to Vodafone Idea and its investors, contributing to the positive sentiment surrounding the stock.

Technical analysts maintain a ‘positive’ outlook on Vodafone Idea shares, identifying potential support around ₹15. The company’s board meeting on February 27th will further clarify the fundraising strategies being pursued by the telecom operator.