Bharti Airtel on Sunday said its board has approved raising up to Rs 21,000 crore through a rights issue. The company's board of directors at its meeting comprehensively reviewed the industry scenario, business environment, financial/ business strategy of the company and approved the 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 crore," the telecom operator said in an exchange filing.
The rights issues will be priced at Rs 535 per fully paid-up equity share, while the rights entitlement ratio will be one equity share for every 14 equity shares held by eligible shareholders as on record date.
On terms of payment of issue price, the company said, "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."
Bharti Airtel's promoter and promoter group will collectively subscribe to the full extent of their aggregate rights entitlement, and will also subscribe to any unsubscribed shares in the issue.
The company said its 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.
Earlier this week, the Supreme Court had provided a big relief to the telecom company by directing the government to not invoke the bank guarantee furnished by Bharti Airtel for payment of Rs 1,300 crore in AGR dues for three weeks. Airtel was also allowed to move Telecom Disputes Settlement and Appellate Tribunal (TDSAT) for interim relief.
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