Vodafone Idea board approves Rs 25,000 crore rights issue at 60% discount

Shares of the country’s largest telecom player in terms of subscribers, Vodafone Idea (VIL), tumbled after its board approved a Rs 25,000-crore rights issue, one of the largest in Indian markets.

The stock recovered after falling as much as 7.6 per cent to Rs 29.6 a piece (close to a 52-week low of Rs 28.8), ending at Rs 33 a piece, up 3 per cent from the previous close.

VIL shareholders would be able to buy 87 shares for every 38 held for an issue price of Rs 12.50 a share, or a 60 per cent discount to the current stock price. However, in terms of the adjusted share price for the rights issue, which is Rs 18.7, the discount is 33 per cent.