Bharti Airtel Confirms Fund Raise of Rs 21,000 Crores

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Bharti Airtel

Bharti Airtel has just submitted its plan of fundraising with the stock exchanges of India. The second-largest telco has confirmed that it will raise Rs 21,000 crores through a rights issue. This news is certainly going to help the company’s stock when it opens on Monday (assumption, not investment advice). This move from Bharti Airtel cements its plan for having enough cash in the bank so that it could invest in its networks to increase capacity and also pay off its debts more comfortably.

Bharti Airtel’s Board Has Approved Fund Raising Plan

On Sunday, Bharti Airtel’s board has confirmed the company’s plan of raising capital through a rights issue. According to the company’s submission at the stock exchanges, Airtel is going to price each share at Rs 535.

Airtel’s board has decided that the face value of each share will be Rs 5. The shares will be issued by the company on a rights basis to all the eligible equity shareholders of Bharti Airtel. The issue size will be up to Rs 21,000 crores.

All the subscribers will have to pay 25% of the amount at the time of application, and the balance amount will have to be paid in two additional calls whenever Airtel’s board decides. But all the calls for the balance amount will be made by the company within 36 months or 3 years.

Bharti Airtel will offer 1 equity share from this rights issue to every shareholder who has at least 14 shares of the company on the record date. The other terms and conditions of the issue will be decided by the 'special committee of directors' that the company has selected.

Bharti Airtel said that the promoter group and the promoter of the company will completely subscribe to the maximum extent entitled to them and will also purchase any unsubscribed shares issued in the rights issue.

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