Vodafone Idea to raise Rs 20,000 crore via equity with promoter participation : Daily Market Update -28 Feb 2024 | Globe Capital Market LTD.
Vodafone Idea to raise Rs 20,000 crore via equity with promoter participation : Daily Market Update -28 Feb 2024

Vodafone Idea Ltd's board has approved a fundraise plan of Rs 20,000 crore via equity as the debt-laden telecom operator keeps the hunt on for new investors to fund the rollout of 5G. The board met on Tuesday to consider the fundraise via a combination of equity and/or equity-linked instruments. The promoters will also participate in the proposed equity raise, according to an exchange filing. The company will seek the shareholders' nod on April 2 and expects to complete the capital raise in the coming quarter.

Overview and Outlook

Global Stock Market Today

  • Barring DOW, other US equity markets settled on a flat to positive note.
  • Barring FTSE, other European equity markets settled on a positive note.
  • Asian equity markets are trading on a mix note.
  • GIFT Nifty is little changed, Nifty futures is likely to open around 22220 levels (as on 8:30AM).


News highlights from across the globe

  • Stocks in the Asia-Pacific region are trading mix on Wednesday, as Federal Reserve official said there’s no hurry to cut interest rates.
  • Federal Reserve Governor Michelle Bowman said that it’s too soon to begin rate cuts, and reiterated her view that inflation will continue to further with the current level of interest rates, Bloomberg reported.
  • Wall Street witnessed another busy session of bond sales as issuers looked to borrow before key U.S. PCE data due later this week.


Important news updates from the domestic front

  • Vodafone Idea: The board has approved a fundraise plan of Rs 20,000 crore via equity as the debt-laden telecom operator keeps the hunt on for new investors and fund rollout of 5G. The promoters will also participate in the proposed equity raise.
  • Axis Bank: The Reserve Bank of India has approved the appointment of Munish Sharda as executive director and full-time director of the company.
  • Zee Entertainment Enterprises has expanded the scope of its recently constituted independent advisory committee to include an investigation to review the allegations levelled by regulators and other parties.
  • Hindustan Zinc incorporated a new subsidiary to explore, discover, develop and tap critical mineral resources. It will also participate in the auctioning of mining blocks containing critical minerals.
  • SJVN’s unit bagged a 100 MW solar power project at a tariff of Rs 2.64 per unit through competitive tariff bidding conducted by Gujarat Urja Vikas Nigam. The power purchase agreement for the same has been signed with Gujarat Urja Vikas Nigam for 25 years. The cost of Developmnent for this project is Rs 642 crore.
  • GE T&D India secured orders worth Rs 370 crore from Power Grid Corp. for the supply of 765 kV shunt reactors for various transmission system projects in India.
  • Indostar Capital Finance will raise over Rs 450 crore by preferential allotment of warrants to Brookfield AMC and Florintree Tecserv. Brookfield to invest Rs 256.6 crore, and Florintree to invest Rs 200 crore in the company.
  • Tata Elxsi and Telefónica collaborate to achieve true cloud-native infrastructure management, revolutionising the telecommunications landscape.
  • Exide Industries invested Rs 24.99 crore in its wholly owned subsidiary, Exide Energy Solutions, on a rights basis. The total investment stands at Rs 1,925 crore.


Nifty Overview & Outlook

The benchmark Nifty index settled at day’s highs at 22198 levels after adding 76 points to its previous closing values after a highly volatile trading session where steep moves were seen on both side.

Midcap index underperformed the benchmark as it settled on a flat to negative note while Small cap index traded in line with the benchmark, rose just 0.34%; resultant, flat market breadth.

Majority of sectoral indices tracked at NSE settled higher. Amongst them, Nifty Realty index was at the top of the tally up over 1% followed by Nifty Auto, Consumer Durables, IT and Pharma index that settled higher in range 0.5% to 1%. On the other hand, Nifty PSU Bank and Media led the decline, fell over 0.5% each.

Going ahead, we expect Nifty index to trade with sideways to positive bias till it is trading above 21800 levels on closing basis and suggest traders to maintain buy on dip trading strategy till it is trading above the said levels.


Derivatives Overview & Outlook

Yesterday, no significant changes was seen in Nifty and Banknifty futures on price front, whereas on open interest front, both added around 2.6% and 3.2% of open interest respectively. Long unwinding was seen in Finnifty futures with decrease in open interest by 63.5%.

Nifty and Banknifty futures have rolled 55% & 43% of open interest respectively into next contract so far.

On options front, put writing along with call writing was seen at multiple strikes and maximum positions are at 22000 PE and 23000 CE closely followed by 22200 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 1509 Cr in the cash segment, sold stocks futures worth Rs 1084 Cr and bought index future worth Rs 139 Cr. DIIs were net buyer in the cash segment to the tune of Rs 2862 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 222800-22360; Supports 22050-21910

Banknifty – Resistances 46900-47200; Supports 46300-46000

Finnifty – Resistances 20800-20900; Supports 20500-20400


F&O Securities in Ban Today  –ABFRL, CANBK, INDUSTOWER, SAIL, ZEEL.


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