Vodafone Idea slumps 9% ahead of telecom company listing new shares

Shares of Vodafone Idea Ltd (VIL) slumped 9 per cent on Wednesday to end at Rs 13.1. The sharp drop comes a day ahead of the listing of 16.36 billion new equity shares issued in the Rs 18,000-crore follow-on public offering (FPO). Following the strong demand in the FPO, VIL has decided to issue the new shares at Rs 11 apiece, the upper-end of the price band. The latest close is still 19 per cent above the FPO price.

“Some existing investors of VIL cashed out on concerns that the new shares will exit downward pressure. Also, some FPO applicants too were able to sell shares as the new shares will get credited later tonight which can be used for delivery,” said an executive with a brokerage.