Voda rights on target
The offer got bids worth Rs 26,900 crore against issue size of Rs 25,000 crore, a subscription of around 1.08 times
- Published 26.04.19, 12:49 AM
- Updated 26.04.19, 2:50 AM
- a min read
The mega rights issue of Vodafone Idea was oversubscribed with its promoters committing Rs 18,250 crore even as there was good response from both retail and institutional investors.
While the final numbers of the issue which closed for subscription on Wednesday are still awaited, it is learnt that the offer received bids worth Rs 26,900 crore against an issue size of Rs 25,000 crore, a subscription of around 1.08 times.
Through the rights issue, Vodafone Idea offered 2,000 crore new shares at Rs 12.50 per share which was a sharp discount to the current market price.
According to NSE data, the rights issue had received bids for 1,109 crore shares.
PTI quoting a banker said data published by the stock exchanges do not include subscription that goes to the registrar directly under the applications supported by blocked amount (ASBA) facility. Moreover, the rights issue entitlement worth about Rs 2,000 crore renounced by Malaysia-based Axiata Group has gone through the non-ASBA route.
Axiata had held 71.2 crore shares and in the rights issue, it was entitled to subscribe 163 crore shares worth about Rs 2,000 crore.
In a clarification to the stock exchanges earlier during the day, Vodafone Idea said as per preliminary information, the total applications from ASBA and non-ASBA exceeded the total issue amount of Rs 25,000 crore.
An ASBA is an application containing an authorisation to block the application money in the bank account for subscribing to an issue. The money is debited from the bank account if an application is selected for allotment.