Malaysia\'s Axiata group renounces shares entitlement

Malaysia’s Axiata Group Berhad has renounced its shares entitlement in Vodafone Idea’s ongoing Rs 25,000 crore rights issue in favour of global investors, a move which will bring down its stake in India’s largest telecom operator to 2.6% from 8.1%.

“Axiata has renounced its rights entitlements in favour of investors through transactions on BSE,” a Vodafone Idea spokesperson told ET, adding that investors keen to participate in the telco’s rights issue “have acquired rights renunciations on the exchange, which shows their interest in VIL and its issue”.

A senior Vodafone Idea (VIL) executive said on condition of anonymity that several investors had reached out to bankers and the company, expressing interest in buying rights renunciations, if available. Separately, a person said Axiata ’s non-participation won’t hurt VIL’s rights issue as the Malaysian telco’s “renounced rights entitlement is learnt to have already been oversubscribed more than 3x by global investors, translating into demand worth $1 billion.”