The board of directors of telecommunications operator Bharti Airtel on Sunday approved the issuance of rights up to 21,000 crore rupees, according to a regulatory filing. The board of directors, which met to review the company’s capital raising plans, authorized the issue price of the rights of Rs 535 per fully paid share, including a premium of Rs 530 per share.
In a BSE filing, Airtel said that “the board of directors has approved the issuance of shares with a par value of Rs 5 each of the company on the basis of the rights to eligible shareholders of the company to the registration date (to be notified later), with an issue size of up to Rs 21,000 crores “.
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Bharti Airtel shares on Friday closed at Rs 588.45 on the NSE, up nearly 0.3% from the last closing price on Thursday.
The rights allocation ratio corresponds to 1 capital share for 14 capital shares held by eligible shareholders on the registration date.
The terms of payment of the issue price provide for 25% on demand and the balance in two additional calls, as may be decided by the board or the board committee depending on the needs of the company within an overall period of 36 months, Airtel said. .
“The promoter and the group of promoters of the company would collectively subscribe to all of their cumulative rights,” he said, adding that “they would also subscribe to all of the unsubscribed shares of the issue.”
The Board of Directors has established a “Special Administrative Committee” to decide on the other terms and conditions of the issue, including the issue period and the registration date.
The board of directors at the meeting reviewed the industry scenario, business environment, financial and business strategy of the company and approved the plan to raise additional capital, Airtel said.