Vodafone Idea large trade: Shares worth Rs 2,000 crore change hands

Vodafone Idea large trade: Shares worth Rs 2,000 crore change hands

Vodafone Idea shares sank two percent in early trade on April 26, after shares worth Rs 2,000 crore exchanged hands in a block deal.

The shares represented around three percent of the total equity in the company. Moneycontrol could not immediately ascertain the buyers and sellers of the deal.

Sources told CNBC-TV18 that the likely seller in today’s block deal was ATC Telecom Infrastructure, which is likely a “clean-out” trade. The March shareholding data says ATC Infra held 2.8 percent in Vodafone Idea, as ATC Infra had recently converted its debentures into equity.

At 9.20 am, Vodafone Idea stock was quoting Rs 13.6 on the NSE, lower by 2.1 percent from the previous close.

Follow our market blog to catch all the live updates

Vodafone Idea’s FPO shares listed on the bourses on April 25. The Aditya Birla Group company raised Rs 18,000 crore in India’s largest ever FPO so far, after securing a substantial investment from institutional investors.

“We remain wary about the short-term prospects of the company and advise investors with moderate to high risk appetite to play this story from a turnaround perspective as we believe that it would take few quarters for the company to improve its competitiveness in the near duopoly Indian telecom market,” Manish Chowdhury, head of research at StoxBox, said.

Amit Goel, co-founder and chief global strategist at Pace 360 suggests investors to park moderate funds for the long term and add on post-listing at lower levels to average out the investment with a long-term investment strategy.

Vodafone Idea will spend Rs 12,750 crore of the net issue proceeds for the expansion of the network infrastructure by setting up new 4G and 5G sites and the expanding the capacity of existing 4G sites.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.