Amid intense competition from Reliance Jio, Vodafone Idea has announced a mega fund raising plan of Rs 25,000 crore via a rights issue, just days after rival Bharti Airtel had announced a mega Rs 32,000 crore war chest. Vodafone Idea’s board has approved a rights issue at Rs 12.50 per share for an amount aggregating up to Rs 25,000 crore. The Board of Directors also fixed the record date for the purpose of determining the shareholders who will be eligible to apply for the Issue as 2nd April, 2019, the firm said in a statement on the exchanges. The rights issue price at Rs 12.50 is at a steep 58% discount to the current market price of Rs 30. We take a look at key details of the rights issue.
- The issue size aggregates to up Rs 25,000 crore.
- The issue price is fixed at Rs 12.50, representing a steep discount or nearly 60% of the market price at 30.
- The entitlement ratio is fixed at 87 Equity Shares for every 38 Equity Shares held by the eligible shareholders of the Company on the record date
- The issue opens on 10th April 2019 and closes on 24th April 2019
