Vodafone Idea promoters pay Rs 17,920 cr to rights issue

The promoters of telecom major Vodafone Idea contributed Rs 17,920 crore to its Rs 25,000 crore rights issue against their initial commitment of Rs 18,250 crore due oversubscription by public shareholders, the company said on Sunday. Consequent to this contribution, the promoters` stake in the company rose marginally to 71.57 per cent from 71.33 per cent, the company said in a regulatory filing.

Announing the successful conclusion of its rights issue, Vodafone Idea said that its new shares are expected to be listed on the BSE and the National Stock Exchange on or around May 10. "The issue was oversubscribed approximately 1.08x and the public participation was approximately 1.2x. The promoter or promoter group applied for higher than their aggregate rights entitlement in line with their earlier commitment. However, due to strong demand from public shareholders, the final allotment to the promoter or promoter group was Rs 179.2 billion (Rs 0.9 billion over their aggregate rights entitlement)." 

Commenting on the rights issue, Balesh Sharma, CEO Vodafone Idea, said: "The successful closure of rights issue is a clear indication of the investors` belief in our post-merger strategy and our ability to leverage the growth opportunities offered by the sector. Our ongoing investments are improving broadband coverage and capacity, enabling us to offer a superior network experience to our customers as well as enhancing our ability to win new broadband customers." 

Akshaya Moondra, CFO, Vodafone Idea, said: "This funding along with the monetisation of our stake in Indus will allow us to make the required investments in the business to achieve our strategic goals."