Axiata Said To ‘Renounce’ Share Entitlement In Vodafone Idea Rights Issue
Renouncement of entitlement will expand the shareholder base of Vodafone Idea.
Malaysia-based Axiata Group has "renounced" its right to entitlement of Vodafone Idea Ltd. shares under the Rs 25,000-crore rights issue, according to sources aware of the development.
Axiata Group, which held a 8.1 percent stake (valued at Rs 3,771 crore) in the telecom major, was entitled to receive 87 equity shares for every 38 shares held by eligible shareholders of the company on the record date, April 2, 2019.
While the Malaysian group will stay invested in the company, the renouncement of entitlement will expand the shareholder base of Vodafone Idea.
The telecom major's Rs 25,000-crore rights issue opened on April 10 at a price of Rs 12.50 per equity share.
Promoter shareholders -- Vodafone Group and Aditya Birla Group -- have reiterated to the board that they intend 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 rights issue.