Written by Susmita Pakrasi | Edited by Amit Chaturvedi
Bharti Airtel will open its ₹21,000-crore rights issue on Tuesday. It will close on October 21. The issue size has been fixed as “up to 392,287,662 Rights Equity shares”, according to a statement from the company. The rights issue price comes to ₹535 per fully paid-up equity share, including face value of ₹5 and premium of ₹530 per equity share, according to news agency PTI.
In a rights issue, a company offers rights to its existing share holders to buy additional shares. According to Bharti Airtel, the eligible shareholders will receive one share for every 14 shares held on the record date. A rights entitlement gives the owner of the shares credited to their demat account the option to sell those in the secondary market if they choose not to participate in the rights issue. The decision on the rights issue was taken by the special committee of directors for the rights issue on September 22 this year.
Bharti Airtel is the second largest telcom company in the Indian telecom market, next to Reliance Jio, with a mobile user base of 35.2 crore. The company aims to use the capital for growth purposes going ahead with the promoter assuring of participating in the issue and clearing any unsubscribed shares.
Earlier, Bharti Airtel had fixed September 28 as the record date for rights entitlement in the issue. The rights entitlement ratio entails one equity share for every 14 shares held by eligible shareholders as on the record date. The promoter holding in Bharti Airtel is about 55.8 per cent, while the public holds 44.09 per cent.
The total debt of Bharti Airtel at the end of the April-June 2021 quarter was over ₹1.59 lakh crore, PTI reported.
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