Vodafone Idea promoter stake may cross limit

KOLKATA: Vodafone Idea (VIL) may need to go for a qualified institutional placement (QIP), or a preferential equity issuance, within a year to bring promoter holding at 75% or below, if its minority shareholders contribute less than Rs 5,400 crore in the telco’s upcoming Rs 25,000 crore rights issue, analysts said.

The pro-rata contribution requirement of VIL’s minority investors based on the 28.67% free float is roughly Rs 7,170 crore.

The promoters have said they will take up the unsubscribed portion, if any, which may take their holding well over the permitted 75% limit, which needs to be brought down in a year’s time.