The board of Vodafone Idea Limited on Wednesday approved a proposal to raise ₹25,000 crore by way of rights issue to existing shareholders of the company.
“The board has considered and approved the offer and issue of fully paid-up and/or partly paid-up equity shares of the company and/or other securities convertible into equity shares of the company, including but not limited to compulsorily convertible debentures, for an amount aggregating up to ₹25,000 crore, by way of a rights issue to existing eligible equity shareholders of the company as at the record date,” the company said in a filing with the exchanges.
The promoter-shareholders — Vodafone Group and Aditya Birla Group — have reiterated to the board that they intend to contribute up to ₹11,000 crore and up to ₹7,250 crore, respectively, as part of such rights issue.
The promoter-shareholders have indicated that in case the rights issue is under-subscribed, each of the promoter-shareholders reserves the right to subscribe to a part or the whole amount of the unsubscribed portion, subject to applicable law, the company said in a statement.
Shares rise
For the purpose of giving effect to the rights issue, the board has authorised the capital raising committee to decide the terms and conditions of the rights issue.
Vodafone Idea shares rose 0.90% to close at ₹33.75 on the BSE in a weak Mumbai market on Wednesday.
