INSUBCONTINENT EXCLUSIVE:
rights issue has resulted in losses for the public shareholders, eroding 21 per cent of their shareholding value, according to industry
sources.As per the sources, the total loss to public shareholders is to the extent of Rs 1,317 crore.The country's largest telecom
operator had approved the rights issue for shareholders on January 23, 2019, when the closing stock price was Rs 33.90.The rights issue, for
raising Rs 25,000 crore, opened on April 10 and closed on April 24
Vodafone Idea had offered 2,000 crore shares at a price of Rs 12.50 a share
The entitlement ratio of the issue was 87 rights shares for every 38 currently held by shareholders.The impact of the rights issue on
shareholders has been a loss of Rs 2,024.85 for a subscriber to the issue and Rs 2,105 for an non-subscribing investor, the sources said.The
value of 100 shares before the rights issue, as on 23 January, 2019, was Rs 3,390 for both categories - rights subscribed or rights not
subscribed.The value of shares acquired in the rights issue on a 38:87 ratio, with 229 additional shares on the subscribed portions of the
on this account for rights subscribed is Rs 2,014.85, while for the rights not subscribed it is Rs 2,105 which translates into a per share
loss of Rs 6.15 for rights subscribed, and Rs 21.05 for rights not subscribed.Subscribers to the rights issue have a total of 2,47,36,02,771
shares, and with the loss at Rs 6.15 per share, the total loss in this category is Rs 1,251 crore.Investors who did not subscribe to the
rights issue have 3,12,75,382 shares, where the loss per share is at Rs 21.05 for an aggregate loss of Rs 66 crore.The total loss, thereby,
to the investing public is Rs 1,317 crore.Get the latest election news, live updates and election schedule for Lok Sabha Elections 2019 on
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