Vodafone Idea has received overwhelming response from investors as the Rs 25,000 crore rights issue was subscribed 1.07 times, according to preliminary data accessed by merchant bankers involved in the process.
Vodafone Idea said the company’s rights issue closed for subscription on 24 April 2019 after starting on April 10. The company said the total applications from ASBA and Non-ASBA have exceeded the total issue amount of INR 25,000 crore. Vodafone Idea did not confirm the percentage of over-subscription.

Vodafone Idea offered 2,000 crore new shares at Rs 12.50 apiece.

National Stock Exchange (NSE) data indicated that the rights issue has received bids for 1,109 crore shares, PTI reported.

The rights issue entitlement worth about Rs 2,000 crore renounced by Malaysia-based Axiata Group has gone through Applications Supported by Blocked Amount (ASBA) route.

Axiata, a leading telecom operator in Malaysia, held 71.2 crore shares. Axiata was entitled to subscribe 163 crore shares worth about Rs 2,000 crore during the rights issue.

Vodafone Group and Aditya Birla Group, promoter shareholders, aim to contribute up to Rs 11,000 crore and up to Rs 7,250 crore, respectively, amounting to a total of Rs 18,250 crore, as part of the Rs 25,000 crore rights issue.

A JM Financial report said minority shareholders will need to make an investment of at least Rs 5,410 crore in the rights issue to keep promoters’ holding at 75 percent in order to comply with the norms of the Securities and Exchange Board of India (SEBI).