Vodafone Idea approves rights share issue at Rs12.50/sh

With the accelerated integration of two businesses, the company announced in November 2018 that the guided cost synergies would be achieved by FY21, two years ahead of the initial target set at the time of the original merger announcement in March 2017.

Mar 20, 2019 02:03 IST India Infoline News Service

Vodafone Idea
The Board of Directors of Vodafone Idea held on January 23, 2019 approved the offer and issue of fully paid-up and/or partly paid-up equity shares and/or other equity-linked instruments by way of a rights issue to the eligible shareholders of the Company for an amount aggregating up to Rs250bn in accordance with the applicable laws, the Board has today approved issuance of 20bn fully paid up equity shares (face value of Rs10 each) at a price of Rs12.5 per share by way of a rights issue to the eligible shareholders as on the record date April 02, 2019. The rights entitlement is determined as 87 equity shares for 38 equity shares held by the eligible shareholders. The issue will open on April 10, 2019, and will close on April 24, 2019.

The Promoter shareholders (Vodafone Group and Aditya Birla Group) confirmed their participation of up to Rs110bn and up to Rs72.5bn respectively; in excess of their combined current entitlement. Furthermore, certain Promoter shareholders have also indicated that in case the rights issue is undersubscribed, they reserve the right to subscribe to part or whole amount of the unsubscribed portion, subject to the applicable laws.

The company is progressing well on its stated strategy post-merger. With the accelerated integration of two businesses, the company announced in November 2018 that the guided cost synergies would be achieved by FY21, two years ahead of the initial target set at the time of the original merger announcement in March 2017.

Vodafone Idea Ltd is currently trading at Rs31.90 down by Rs0.1 or 0.31% from its previous closing of Rs32 on the BSE. The scrip opened at Rs32.40 and has touched a high and low of Rs32.65 and Rs29.65 respectively.

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