Vodafone Idea Limited - Rights Issue

Trading Announcements
21

Your 9600 shares brought @39.6 will give rights to apply 21924 shares @12.50 per share
At the ratio 87:38

quick maths: 9600÷38 = 252
252×87 = 21924 Rights shares

So in total you’ll have 21924+9600 shares
= 31524 shares

With that shares your “average price” will be as,
Total numbers of shares × investment amount divided by total numbers of shares

9600×39.6 = 3,80,160 Rupees
Rights shares 21924×12.5 = 2,74,050 Rupees
In total 6,54,210 rupees ÷ 31524 total shares

      =20.7 is the "average price" you will get after the rights issue shares.

If the stock price move beyond that you’ll be in profit,
If it goes down from that price you’ll incurred losses.

I hope this helps.

22

thank you so much for your detailed answer, it will help me decide my next step

23

@Mehdi_Abbas

Is the rights issue the reason why IDEA share price is down by more than 50%?
If so, how can investors who did not apply for rights issue account for the price change? Aren’t they in big loss?

24

Yes, its the biggest rights issue worth ₹25,000 Crore by Vodafone Idea,

The rights issue will increase the number of Vodafone Idea shares by 229%, diluting it to 28.74 billion outstanding shares,
This is a 61% discount to prevailing prices and led to shares of Vodafone Idea falling about 7% intraday,

“Its the reason for Vodafone Idea fall”,

For all shareholder who brought shares before 29 march,
They will get rights to apply for shares @12.5 per share a 60% discount in price.
The rights issue will open on 10 april and close on April 24, States the company.

The investors are in loss the stock is trading 52weeks low, after ex rights the stock in trading in trim down price.

Don’t know what will be the next thing for idea!

1 Like
25

I have a doubt regarding the ASBA process.

If we use the ASBA process to apply for the rights issue, can we just ignore the physical CAF that has sent to us via speed post?

Or do we need to do both i.e specify we are using ASBA in physical form as well?

26

If you are using ASBA you may not need the physical form to be posted to register but SCSB will do the needful .

27

Unfortunately Axis Bank Net Banking supports Equity and Debt IPOs, but not rights issues.

I am trying to get the ASBA e-forms from NSE/BSE, but it’s not working.

IDEA absent from NSE list. BSE application is facing errors when you submit details.

Looks like physical form is the only way.

Does anyone else know a way to get ASBA e-forms for Vodafone Rights issue?

1 Like
28

Can we apply in any branch? I have my savings account in Icici but the ASBA branch is very away from my place. Also, is there any way to do it online?

Feeling cheated because of this rights issue!! this is my biggest lesson learned from corporates…

Even after applying we are not sure whether we have filled the form correct and our application will be accepted…

3 Likes
29

My Zerodha account is linked with SBI. Is anyone aware how to apply for the Vodafone Idea rights issue from SBI online, as I don’t see it appearing in the ‘ASBA’ IPO services of the bank. Please help.

4 Likes
30

You can apply from any Self Certified Syndicate Bank online.

31

Thanks a lot @mohitmehra for the info.

32

Dear Mohit,

Thanks for the response.
Could you please share me process details of the same. Is SBI part of the SCSB?

33

I see SBI in the list of SCSB. However, the branch linked to my Demat account isn’t in the list of SBI’s SCSB branches. What is the way forward, as am currently abroad.

Advise me guys…

1 Like
34

@mohitmehra
Can you please help with list of banks which accepts the Rights Issue through ASBA/Net Banking. :thinking:
This will be very useful for everyone. :innocent:
I didn’t find it on Kotak, ICICI and Bank Of India, Correct me if I am missing anything here. :smiley:

1 Like
35

Quite interesting to see such a unexpected surge in demand for rights issue of an stock which is heavily beaten down and having minimalistic probability of making a great comeback in Telecom sector which again is ruled by top 2 players, just wondering what are the expectations from stock :thinking:

36

It’s also available online on Kotak. There is an application one needs to submit at their branch to link their Demat account with the bank account (I’m getting this from the Kotak customer care helpline). This application is in addition to the process of providing demat account details online for IPOs. I couldn’t find it on Yes Bank, SBI and HDFC. Assuming, the same process is involved.

Downloading the CAF online and submitting it at an SCSB Branch seems like the simplest option to me right now. Hopefully, this helps.

37

Thanks a lot @mohitmehra , I will update you on the same after Contacting the Branch. :slightly_smiling_face:

38

Was anyone able to download the CAF from the link given by @mohitmehra ? The page always returns ‘No Records Found’

39

Arbitrage - currently quoting at approx Rs. 16.50 - while the rights issue is at 12.50. If the price does not fall any further till rights’ listing, there is a 32% profit to be made.

40

Wouldn’t the share price adjust after ex-date, just curious, don’t know much about rights issue