NEW DELHI: Bharti Airtel, led by Sunil Mittal, announced a mega fundraiser of 21 billion public dollars announcing a rights issue at a price of 535 rupees per share, the money coming at a time when the company is prepares for the launch of 5G services in India, although it seems to reduce its huge debt by 1.6 lakh.
The funds are also expected to help Airtel add a healthy war chest, as a possible collapse of Vodafone’s rival idea could mean it could gain a large number of new subscribers, many of whom will also become the leader of the Vodafone. Reliance Jio market. A large influx of customers (Vodafone Idea currently has about 27 million users) would mean that Airtel would have to invest in capex and other infrastructure to cope with the increase.
In a regulatory filing on Sunday, Airtel said its board approved the issuance of rights for “… issue of nominal capital shares of Rs 5 crore from each of the companies based on rights to eligible shareholders of the company on the date of registration (to be notified later), of an issue size of up to Rs 21 billion ”.
The rights-to-rights ratio involves one capital share for every 14 capital shares available to eligible shareholders on the registration date.
The terms of payment of the issue price provide for 25% on the application and the balance in two additional calls, as may be decided by the board or its committee based on the requirements of the company in a global time horizon of 36 months, Airtel said.
“The promoter and the promoter group of the company would collectively subscribe for all of their accumulated rights,” he said, adding that “they will also subscribe for the unsubscribed shares of the issue.”
The participation of promoters in the company is around 55.8%, while the public participation is 44.09%.
The Airtel Board of Directors has set up a “Special Management Committee” to decide on the other terms and conditions of the issue, including the issue period and the registration date.
The board of directors of the meeting reviewed the scenario of the telecommunication industry, the business environment, the financial and commercial strategy of the company and approved the plan to increase the capital.
Shares of Airtel had closed at 593.95 rupees each on Friday, 1.21% more than the previous close.
In last week’s note, Jefferies had said that any capital increase by Bharti Airtel aimed at improving capacity in anticipation of major changes in Vodafone Idea’s market share could be seen “positively”.
Airtel, India’s second-largest telecommunications company, added 38.1 lakhs of wireless subscribers in June, increasing its mobile user base to 35.2 million.
The funds are also expected to help Airtel add a healthy war chest, as a possible collapse of Vodafone’s rival idea could mean it could gain a large number of new subscribers, many of whom will also become the leader of the Vodafone. Reliance Jio market. A large influx of customers (Vodafone Idea currently has about 27 million users) would mean that Airtel would have to invest in capex and other infrastructure to cope with the increase.
In a regulatory filing on Sunday, Airtel said its board approved the issuance of rights for “… issue of nominal capital shares of Rs 5 crore from each of the companies based on rights to eligible shareholders of the company on the date of registration (to be notified later), of an issue size of up to Rs 21 billion ”.
The rights-to-rights ratio involves one capital share for every 14 capital shares available to eligible shareholders on the registration date.
The terms of payment of the issue price provide for 25% on the application and the balance in two additional calls, as may be decided by the board or its committee based on the requirements of the company in a global time horizon of 36 months, Airtel said.
“The promoter and the promoter group of the company would collectively subscribe for all of their accumulated rights,” he said, adding that “they will also subscribe for the unsubscribed shares of the issue.”
The participation of promoters in the company is around 55.8%, while the public participation is 44.09%.
The Airtel Board of Directors has set up a “Special Management Committee” to decide on the other terms and conditions of the issue, including the issue period and the registration date.
The board of directors of the meeting reviewed the scenario of the telecommunication industry, the business environment, the financial and commercial strategy of the company and approved the plan to increase the capital.
Shares of Airtel had closed at 593.95 rupees each on Friday, 1.21% more than the previous close.
In last week’s note, Jefferies had said that any capital increase by Bharti Airtel aimed at improving capacity in anticipation of major changes in Vodafone Idea’s market share could be seen “positively”.
Airtel, India’s second-largest telecommunications company, added 38.1 lakhs of wireless subscribers in June, increasing its mobile user base to 35.2 million.