New Delhi: Telecom operator Bharti Airtel will open up Rs 21,000 crore rights issue on October 5, according to a regulatory filing on Wednesday. The dates have been finalised at the Board of Directors' meeting, which fixed September 28 as the record date for the purpose of determining the eligible shareholders.
On August 29, the company approved raising up to Rs 21,000 crore by way of rights issue, for Rs 535 per share, including a premium of Rs 230.
ALSO READ: Modi In America: From Defence To IT, Know Why Interaction With Global CEOs Assumes Significance
In the filing, Bharti Airtel said its special committee of directors for the rights issue has approved October 5 as the issue opening date and October 21 as a closing date. The rights entitlement ratio entails one equity share for every 14 shares held by eligible shareholders as on the record date.
The terms of payment of issue price stated that 25 per cent will be paid upfront and the rest will be called as per requirement over the next 36 months. The promoter and promoter group of the company will collectively subscribe to the full extent of their aggregate right.
Promoter holding in the company stands at about 55.8 per cent , while the public holds 44.09 per cent. The amount raised will boost the company's capabilities to take on its rivals in the fiercely competitive telecom market.
Led by Sunil Mittal, Bharti Airtel is the second largest telecom and as per subscriber data released by telecom regulator recently, Airtel added 38.1 lakh wireless subscribers in June, pushing up its mobile user base to 35.2 crore.
In a recent global rating by S&P, the agency maintained Bharti Airtel's credit rating at "BBB-", and upgraded the outlook to stable from negative, indicating the company's improved financial status and ability to pay back debt.