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Vodafone Idea slips 12%, hits new low as rights issue shares start trading

About 20,000 million new shares of Vodafone Idea have started trading at National Stock Exchange (NSE) and the BSE with effect from today.

SI Reporter  |  Mumbai 

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shares hit a new low of Rs 13.65, down 12 per cent on Wednesday, declining 17 per cent in past two trading days on the BSE, on back of two-fold jump in trading volumes.

The stock of Aditya Birla Group Company fell below its previous low of 14.95 hit on April 4, 2019 in intra-day trade. A combined 135 million shares have changed hands till 11:23 am; as compared to an average 48 million shares, that were traded daily in past two weeks on the and

About 20,000 million new shares of have started trading at National Stock Exchange (NSE) and the with effect from today.

“The new securities of 19,999.99 million equity shares of Rs 10 each issued at a premium of Rs 2.50 per share on rights basis are listed and are permitted to trade on the exchange with effect from Wednesday, May 8, 2019,” said in a notice dated May 7, 2019.

“The Capital Raising Committee of the board of directors of Vodafone Idea at its meeting dated May 04, 2019 approved the basis of allotment of equity shares to the eligible equity shareholders including renouncees, to conclude India’s largest offering by the Company of approximately Rs 250 billion,” Vodafone Idea said in media release on May 5, 2019.

Post allotment, the total promoter / promoter group aggregate shareholding is 71.57 per cent versus 71.33 per cent as on the record date, it added.

Meanwhile, according to a Business Standard report, some analysts feel that Vodafone Idea's revenue market share could slip below 25 per cent over the next 18 months. While analysts expect stability in the telecom sector by end of FY20, they say that there is little scope for the incumbents Bharati Airtel and Vodafone Idea to return to the top position across the portfolio of telecom performance metrics like revenue market share, subscriber additions or content monetisation. CLICK HERE TO READ FULL REPORT

First Published: Wed, May 08 2019. 11:26 IST