Voda Idea board okays Rs 25,000 crore rights issue

NEW DELHI: The board of India’s largest telecom operator Vodafone Idea approved raising of up to Rs 25,000 crore through rights issue, the company said on Wednesday.

The issue price is set at Rs 12.50 per equity share, a Rs 2.50 premium over face value of Rs 10.

Following the development, the stock took a beating. It was quoting 5.31 per cent lower at Rs 30.30 around 12:30 pm. However, shares of the company rebounded later and settled at Rs 33, up 3.13 per cent.


The issue will run between April 10 to April 24. The record date for the purpose of determining the shareholders who will be eligible to apply for the issue is April 2.

An ET report had earlier suggested that the company is raising funds with an aim for expanding 4G capacity and the telco is trying to make sure that its investments towards building the network are future-proof.

In ETTelecom’s India Mobile Conclave 2019, Vodafone Idea CTO Vishant Vora said, “We are making sure all our investments are future proof. Our intent is to deploy massive MIMO at a big scale and make extensive use of HetNet.”