Vodafone Idea infuse Rs.17920 crore through right issue

The promoters of India's largest telecom opeartors Vodafone Idea have infused Rs. 17920 crore in the firm through right issue.

"The promoter / 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 / promoter group was Rs. 179.2 billion (Rs. 0.9 billion over their aggregate rights entitlement). Post allotment, the total promoter / promoter group aggregate
shareholding is 71.57 percent versus 71.33 percent as on the record date," the company said in a statement.

The new shares are expected to be listed on the BSE and NSE on or around May 10, 2019.

Balesh Sharma, CEO Vodafone Idea limited, 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.We are progressing well on integration and are well on track to deliver our synergy targets.

"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," Sharma added.

The Capital Raising Committee of the board of directors of the firm approved the basis of allotment of equity shares to the eligible equity shareholders including renouncees, to conclude India's largest rights issue offering by the Company of approximately Rs. 250 billion.

The rights issue of the Company received strong support from both existing shareholders as well as from other investors. The Company witnessed participation from both domestic and foreign public shareholders. The issue was oversubscribed approximately 1.08x and the public participation was approximately 1.2x, VIL informed.

Akshaya Moondra, CFO Vodafone Idea limited, said "We are pleased to announce the successful closure of India's largest rights issue offering, which witnessed participation from promoters along with the strong demand from other marquee existing shareholders and new investors.

"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," Moondra added.