Vodafone Idea rights issue: Analysts say mouth-watering deal for investors

NEW DELHI: After Bharti Airtel, Vodafone Idea has also announced a rights issue to raise some Rs 25,000 crore to take on the stiff competition.

The board of India’s largest telecom operator by subscriber base, Vodafone Idea, approved the rights issue plan on Wednesday. It said the fund raising is aimed at strengthening the company’s countrywide 4G coverage and fighting competition from Bharti Airtel and Reliance Jio Infocomm.

At first glance, it looks a large sum, capable of boosting the company’s finance to a large extent, help it pare debt of around $15-16 billion and expand the business in the face of cut-throat competition.