Vodafone Idea to raise Rs 25,000 cr through rights issue

Telecom major Vodafone Idea on Wednesday said its Board has approved raising funds up to Rs 25,000 crore through rights issue.

During the Board meeting on Wednesday, the promoter shareholders -- Vodafone Group and Aditya Birla Group -- reiterated that they would contribute up to Rs 11,000 crore and Rs 7,250 crore, respectively, as part of such rights issue.

"The Board has considered and approved the offer and issue of fully paid-up or partly-paid up equity shares of the company and other securities convertible into equity shares of the company, including but not limited to, compulsorily convertible debentures, for an amount aggregating up to Rs 25,000 crore, by way of a rights issue to existing eligible equity shareholders of the company as on the record date," Vodafone Idea said in a regulatory filing.

Further, the promoter shareholders also said that in case the rights issue is under-subscribed, each of the promoter shareholders reserves the right to subscribe to part or whole amount of the unsubscribed portion, subject to applicable law.

Share price of Vodafone Idea on the BSE closed at Rs 33.75, higher Rs 0.30 or 0.90 per cent from the previous close.

--IANS

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