Telecom giant Bharti Airtel’s Board of Directors today in a meeting comprehensively reviewed the industry scenario, business environment, financial and business strategy of the company and approved the company’s plan to raise further capital. Airtel’s Board has approved the issuance of equity shares of face value at Rs 5 each of the company on a rights basis to eligible equity shareholders of the company as on the record date of an issue size of up to Rs 21,000 crores.
The rights issue price is Rs 535 per fully paid-up equity share (including a premium of Rs 530 per equity share) and 25 percent on application and balance in two more additional calls as may be decided by the Board from time to time based on the company’s requirement within an overall time-horizon of 36 months as the terms of payment of issue price.
“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,” said Airtel in a regulatory filing.
The Board also approved a rights entitlement ratio of 1 equity share for every 14 equity shares held by eligible shareholders as on record date. The Board has also constituted a ‘Special Committee of Directors’ to decide the other terms and conditions of the issue including the Issue period and the record date.