Vodafone Concept Rights Concern Erodes 21% Shareholding Worth: Report

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The nation’s largest telecom operator had accepted the rights difficulty for shareholders on January 23, 2019, when the closing inventory worth was Rs 33.90

As per the sources, the whole loss to public shareholders is to the extent of Rs 1,317 crore.

The nation’s largest telecom operator had accepted the rights difficulty for shareholders on January 23, 2019, when the closing inventory worth was Rs 33.90.

The not too long ago concluded Vodafone Concept rights difficulty has resulted in losses for the general public shareholders, eroding 21 per cent of their shareholding worth, based on business sources.

The impression of the rights difficulty on shareholders has been a lack of Rs 2,024.85 for a subscriber to the difficulty and Rs 2,105 for an non-subscribing investor, the sources stated.

The rights difficulty, for elevating Rs 25,000 crore, opened on April 10 and closed on April 24. Vodafone Concept had provided 2,000 crore shares at a worth of Rs 12.50 a share. The entitlement ratio of the difficulty was 87 rights shares for each 38 presently held by shareholders.

The worth of 100 shares earlier than the rights difficulty, as on 23 January, 2019, was Rs 3,390 for each classes – rights subscribed or rights not subscribed.

The entire price of shares held is Rs 6,252.50 for the rights subscribed, and Rs 3,390 for the rights not subscribed. The worth of shares as on date is RS 4,227.65 for rights subscribed and Rs 1,285 for rights not subscribed. 

The worth of shares acquired within the rights difficulty on a 38:87 ratio, with 229 further shares on the subscribed parts of the difficulty, is Rs 2,862.50. 

The loss to the small buyers on this account for rights subscribed is Rs 2,014.85, whereas for the rights not subscribed it’s Rs 2,105 which interprets right into a per share lack of Rs 6.15 for rights subscribed, and Rs 21.05 for rights not subscribed.

Subscribers to the rights difficulty have a complete of two,47,36,02,771 shares, and with the loss at Rs 6.15 per share, the whole loss on this class is Rs 1,251 crore.