Vodafone Idea to issue 87:38 rights shares at Rs. 12.50
The Board of Directors of Vodafone Idea Limited approved the offer and issue of fully paid-up equity shares of the company by way of rights issue in a board meeting held on January 23, 2019. The terms of the right issue were approved in the meeting held on Wednesday, March 20, 2019.
The size of the rights issue is Rs. 25,000 crore including shares with face value of Rs. 10 per share. The issue price would be Rs. 12.50 including premium of Rs. 2.50 per share. The eligible shareholders who apply for rights issue can get shares at 58 per cent discount to its current market price of Rs. 30.
The rights entitlement ratio decided by the company is that 87 equity shares would be issued for every 38 shares held by the eligible shareholders of the company, as on record date.
The record date fixed for the purpose of determining the shareholders eligible to apply for the issue will be April 2, 2019. The issue will open on April 10, 2019 and close on April 24, 2019.
On Tuesday, the stock of Vodafone Idea closed at Rs. 32 per share. On Wednesday, after the details of the right issue were out the stock dipped by 7.3 per cent to Rs. 29.65 per share in the morning trading session.