Bharti Airtel Rights Issue: On Tuesday, Bharti Airtel will launch its 21,000-crore rights issue. The exhibition will be closed on October 21. According to a business release, the issuance size has been set at “up to 392,287,662 Rights Equity shares.” According to news agency PTI, the rights issue price is 535 per fully paid-up equity share, which includes a face value of 5 and a premium of 530 per equity share.
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In a rights issue, a corporation gives existing shareholders the option to purchase more shares. The qualifying stockholders would receive one share for every 14 shares held on the record date, according to Bharti Airtel. If the owner of the shares credited to their demat account chooses not to participate in the rights issue, they have the option to sell those shares on the secondary market. On September 22 of this year, the special committee of directors for the rights issue made a conclusion on the rights issue.
Bharti Airtel, after Reliance Jio, is the second-largest telecom firm in India, with 35.2 million mobile subscribers. The company intends to use the funds for expansion, with the promoter promising to participate in the offering and clear any unsubscribed shares.
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Bharti Airtel had previously set September 28 as the record date for the issuer’s rights entitlement. One equity share for every 14 shares held by eligible shareholders on the record date is the rights entitlement ratio. The promoters own around 55.8% of Bharti Airtel, while the general public owns 44.09 percent.
According to PTI, Bharti Airtel’s overall debt at the end of the April-June 2021 quarter was over 1.59 lakh crore.