Vodafone Idea would issue 20 billion new shares at the price of Rs. 12.50 each at a 60 per cent discount. Therefore, shareholders would be able to buy 87 shares for every 38 shares. The rights issue will significantly increase the number of Vodafone Idea shares by 229 per cent.
In a statement, the company said, “The rights entitlement is determined as 87 equity shares for 38 equity shares held by the eligible shareholders. The issue will open on 10 April 2019, and will close on 24 April 2019”
The rise in the discount has led the shares of Vodafone Idea falling about 7% intraday, before recovering to close 3.3% higher at Rs. 33.10.
Read EquityPandit’s Technical Analysis of Nifty