Bengaluru: Vodafone Idea, India’s largest telecom company by subscribers, is selling $3.6 billion wor-th of shares in a rights issue at a discount of over 60 per cent, which will more than triple its outstanding shares.
The deal announced on Wednesday is the second major fundraising by an Indian telco this year after Bharti Airtel announced a similar plan to raise $4.6 billion to cut debt and funding operations.
Existing Vodafone shareholders will be able to buy 87 shares for every 38 shares held at an issue price of Rs 12.50 apiece, the firm said in a statement. That will be a discount of 61 per cent to the stock's closing price on Tuesday.
Some analysts were skeptical about the benefits of the planned investments and the rights issue to investors.
Vodafone Idea stock fell 7.6 per cent to Rs 29.60.
