Vodafone Idea Rights Issue Subscribed 80%

Vodafone Idea rights issue was subscribed 80% till 8 PM on the closing day indicating a dull trading. For the Rs 25,000 crore rights issue, bids were received only for 1109 crore shares out of total 2000 crore shares put up for trading by the telecom behemoth.

Vodafone Idea had opened the rights issue on April 10 and offered 2000 crore new shares at Rs 12.50 a piece. The issue was closed on April 24. The Rs 25,000-crore Vodafone Idea rights issue was the largest ever by any company in India.

The issue had received bids for 4,92,30,11,512 shares on the Bombay Stock Exchange and 11,09,37,68,673 on National Stock Exchange till 8 PM Wednesday.

As per the company allotment of these new shares will be made around May 6.

Vodafone Idea has said that its promoter shareholders — Vodafone group and Aditya Birla Group– will participate for an amount of up to Rs 20,000 crore in the Issue, instead of the previously announced amount of up to Rs 18,250 crore, in which Vodafone was to subscribe to shares worth Rs11,000 crore, with its partner taking in the rest. The company has also said that its promoters will subscribe to any of the unsubscribed portions.

Malaysia’s Axiata Group Berhad has already decided not to participate in the rights issue, renouncing its shares entitlement in favour of investors through transactions on the BSE, reducing its stake in the company from 8.1% to roughly 2.6%.

Vodafone Idea, the merged entity between the Vodafone India and Idea Cellular, is raising these funds to o repay debt, including spectrum payments. By end of Q3, the company was sitting on a debt pile of Rs 114,700 crore.

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