New Delhi: Foreign investors are likely to invest around Rs 18,000 cr in the rights issue of Vodafone Idea, which includes a major chunk from promoter Vodafone Group, sources said. The company’s Rs 25,000 cr rights issue will open on April 10.
“Vodafone Idea had approached government for FDI approval. The proposal has received clearance from Cabinet. It is expected that Rs 18,000 cr during the rights issue will come from foreign sources,” an official said.
Any foreign funding above Rs 5,000 cr requires Cabinet approval. The Cabinet had on February 28 cleared the company’s FDI proposal. The promoter shareholders — Vodafone Group and Aditya Birla Group — have reiterated to the board that they intend to contribute up to Rs 11,000 cr and up to Rs 7,250 cr respectively, amounting to Rs 18,250 cr, as part of the rights issue.
