On Thursday, the telecom operator passed a resolution for approving, adopting and filing of the red herring prospectus dated (the RHP) with the Gujarat Registrar of Companies (RoC) in connection with the further public offering of equity shares.
The FPO is said to be priced at a “significant discount” to the Rs 14.87 a share that was set for the preferential issue to one of the promoters, The Economic Times had reported quoting a person familiar with the matter earlier in the week. Read here
Brokerage CLSA said last month it has observed keen interest from foreign institutional investors in the UK in Vi’s equity-raise plan.
“The debt funding of around Rs 25,000 crore will follow shortly after the FPO closes,” the person said.
Vodafone Idea shares ended at Rs 12.93 on the BSE on Wednesday, up by 0.15% over the Tuesday closing price. Markets were shut on Thursday on account of Eid-Ul-Fitr (Ramzan Id).After hitting a low of Rs 6 in April last year, the stock has made steady gains to its 52-week high of Rs 18.40. Its one-year returns stand at 108%.The board of the loss-making telco has already approved a preferential share issue to raise Rs 2,075 crore from an Aditya Birla Group (ABG) entity, which set the stage for a wider funding programme critical to the revival of the cash-strapped telco.
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