The stock price of Vodafone Idea increased by more than 2% in early trading on Tuesday, December 10, the day after the firm declared that its board of directors had authorized the issuing of up to 175.53 crore shares to two Vodafone Group companies on a preferential basis in order to raise up to ₹1,980 crore. The price of Vodafone Idea’s shares began at ₹8.25, up 2.35 percent from its previous close of ₹8.10, and reached ₹8.29. On the BSE, the stock was up 1.11 percent at ₹8.19 at 9:25 a.m.
Omega Telecom Holdings Private Limited would receive shares totaling up to Rs 1,280 crore, while Usha Martin Telematics Limited will receive shares valued at Rs 700 crore.
Key highlights of the preferential issue
The company intends to issue equity shares worth 175.53 crore at a price of Rs 11.28 per share. Two Vodafone Group companies, Usha Martin Telematics Limited (for Rs 700 crore) and Omega Telecom Holdings Private Limited (for Rs 1,280 crore), will get these shares. Usha Martin Telematics’ holding will climb from 0.13 percent to 1 percent following the allocation, while Omega Telecom’s stake would expand from 0.40 percent to 1.98 percent.
A premium of Rs 1.28 per share is included in the issue price, and the floor price will be determined on December 6, 2024. Vodafone Idea has been struggling with a large amount of debt, so this fundraiser is a good thing. It is anticipated that the injection will assist the telecom giant in resolving its financial issues and enhancing its operating capacities.
Vodafone Idea share price trend
Over the past few years, Vodafone Idea’s share price has been impacted by the company’s financial difficulties. Trendlyne, an equity research tool, reports that the stock has dropped 49% during the past six months. It suffered a large selloff after reaching a 52-week high of ₹19.18 on June 28. This November 22, it fell to its 52-week low of ₹6.61.
