Bharti Airtel Limited board approves rights issue to raise Rs. 21,000 crores

The Board of Directors ('Board') of Bharti Airtel Limited, at its meeting held today, comprehensively reviewed the industry scenario, business environment, financial / business strategy of the Company and approved the Company's plan to raise further capital. Accordingly, the Board approved the issuance of equity shares of face value of Rs. 5/- each of the Company on rights basis to eligible equity shareholders of the Company as on the record date (to be notified later), of an Issue size of upto Rs. 21,000 Crores (Rs. Twenty One Thousand Crores Only) ('Issue').

The Board approved the following terms of the Issue:

Rights Issue Price: Rs. 535/- per fully paid-up equity share (including a premium of Rs. 530/- per equity share).

Terms of payment of Issue Price: 25% on application and balance in two more additional calls as may be decided by the Board / Committee of the Board from time to time based on the Company's requirements within an overall time-horizon of 36 months.

Rights Entitlement Ratio: 1 equity share for every 14 equity shares held by eligible shareholders as on the record date.

Further the Board has constituted a 'Special Committee of Directors' to decide the other terms and conditions of the Issue including Issue period and the record date.

The promoter and promoter group of the Company will collectively subscribe to the full extent of their aggregate rights entitlement. In addition, they will also subscribe to any unsubscribed shares in the Issue.

Shares of Bharti Airtel Ltd. was last trading in BSE at Rs. 593.95 as compared to the previous close of Rs. 586.85. The total number of shares traded during the day was 418740 in over 6749 trades.

The stock hit an intraday high of Rs. 605.35 and intraday low of 585.2. The net turnover during the day was Rs. 249778498.

Source : Equity Bulls

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