Vodafone-Idea Rights Issue Oversubscribed

Vodafone Idea’s Rs 25,000 crore rights issue is oversubscribed, investment banking sources said, though the data available with the stock exchanges by the evening showed close to 80 percent subscription. Stock exchange data doesn’t capture the non-ASBA applications, and including that data, the issue is comfortably subscribed, sources said.

BSE data showed offers for 4,92,30,10,660 shares and NSE 11,09,28,57,339 shares as against the total issue size of 19,999,830,911 equity shares. Promoters, who hold close to 71 percent stake in the firm, had committed to subscribing to their rights component. On Malaysia’s Axiata group renouncing its rights, reports said new and old investors had picked up the renounced stake of around Rs 2,000 crore.

Vodafone Idea had said that the rights issue proceeds, as well as the monetization of stake in Indus Towers, will allow the company to required investments in the business to achieve strategic goals. Jefferies, in a recent research report, estimated that the company would need further funding in FY21 to fund capex and spectrum payments.―New Indian Express