Axiata Group renounces share entitlement in Voda Idea rights issue: Report

Axiata Group, which held 8.1% stake in the telecom major, was entitled to receive 87 equity shares for every 38 shares held by eligible shareholders of the company on the record date, April 2, 2019

Malaysia-based Axiata Group has "renounced" its right to entitlement of Vodafone Idea shares under the Rs 25,000-crore rights issue, sources said.

Axiata Group, which held 8.1 per cent (valued at Rs 3,771 crore) stake in the telecom major, was entitled to receive 87 equity shares for every 38 shares held by eligible shareholders of the company on the record date, April 2, 2019.

"Malaysia's Axiata Group this morning (Friday) renounced its shares entitlement in Vodafone Idea rights issue to large international and domestic entities," sources aware of the development told PTI.

While the Malaysian group will stay invested in the telecom major, the renouncement of entitlement will expand the shareholder base of Vodafone Idea.

Vodafone Idea's Rs 25,000-crore rights issue opened on April 10 at a price of Rs 12.50 per equity share.

Promoter shareholders -- Vodafone Group and Aditya Birla Group -- have reiterated to the board that they intend to contribute up to Rs 11,000 crore and up to Rs 7,250 crore, respectively, amounting to a total of Rs 18,250 crore, as part of the rights issue.