Telecom major Bharti Airtel’s around ₹21,000 crore rights issue will open next month on October 5 and the Sunil Mittal led-company has fixed September 28 as the record date for rights entitlement in the issue. Airtel’s board had last month approved raising up to ₹21,000 crore by way of rights issue, amid plans to expand its network and prepare for the launch of 5G services, at a price of ₹535 per share, including premium of ₹230.
The telecom operator informed the exchanges on Wednesday said that its special committee of directors for the rights issue has approved October 5 as the issue opening date and October 21 as closing date. The committee has approved September 28 as record date for the purpose of determining the eligible shareholders.
The rights entitlement ratio entails one equity share for every 14 shares held by eligible shareholders as on the record date. The terms of payment of issue price stated that 25% will be paid upfront and the rest will be called as per requirement over the next 36 months.
The promoter and promoter group of the company will collectively subscribe to the full extent of their aggregate right. In addition, they will also subscribe to any unsubscribed shares in the Issue. Promoter holding in the company stands at about 55.8%, while the public holds 44.09%.
The mega fundraising is bound to give more firepower to Airtel as the company takes on rivals in the fiercely-competitive Indian telecom market. Recently, international ratings agency S&P maintained Bharti Airtel’s credit rating at “BBB-“, and upgraded the outlook to stable from negative, indicating the company’s improved financial status and ability to pay back debt.
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