Vodafone Idea prices ₹25,000 crore rights issue at ₹12.5 a share

New Delhi: Vodafone Idea Ltd, India’s largest telecom firm by subscribers, announced Wednesday a ₹25,000 crore rights issue that came at a steep discount to its prevailing share price as it sought to attract enough subscribers.

Vodafone Idea would issue 20 billion new shares at ₹12.50 apiece. This is a 61% discount to prevailing prices and led to shares of Vodafone Idea falling about 7% intraday, before recovering to close 3.3% higher at ₹33.10.

“The rights entitlement is determined as 87 equity shares for 38 equity shares held by the eligible shareholders. The issue will open on 10 April 2019, and will close on 24 April 2019,” the company said in a statement.