The board of directors of Vodafone Idea on Wednesday cleared the planned Rs 25,000-crore rights issue at a price of `12.50 per equity share, a steep 61% discount to the prevailing market rate.
In a regulatory filing, the company said the rights entitlement ratio has been fixed at 87 equity shares for every 38 equity shares held by eligible shareholders of the company on the record date, that is April 2, 2019.
The issue opening date has been fixed for April 10 while the closing date has been set for April 24, 2019, the filing said.
The issue price of `12.50 per equity share (including a premium of `2.50 per equity share) is at a massive 61% discount to the previous closing of `32 per share.
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Earlier this year, the Vodafone Idea board of directors had okayed a `25,000-crore fund-raising plan by way of rights issue to the existing eligible equity shareholders, following which the firm received the Cabinet nod for foreign direct investment (FDI) infusion.
The promoter shareholders Vodafone Group and Aditya Birla Group have told the board that they intend to contribute up to `11,000 crore and up to `7,250 crore respectively, as part of such rights issue.
The promoter shareholders have also said in case the rights issue is under-subscribed, each of the promoter shareholders reserves the right to take up part or whole of the unsubscribed portion, subject to stipulated norms.
“The proceeds from the rights issue coupled with the monetisation of our stake in Indus will allow us to make the required investments in the business to achieve our strategic goals,” Balesh Sharma CEO Vodafone Idea said.