Market Alert: Bharti Airtel – Today is the last date to sell Bharti Airtel RE

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All about the rights issue:

Telecom major Bharti Airtel recently announced that it will raise Rs. Rs 21,000 crore by way of a rights issue. Its Board has approved this issue. Every existing share holder can exercise this option. For every 14 shares held, 1 share can be purchased. The exercise price will be Rs.535 per share, including a premium of Rs 530 a share. Record date is at September 28, 2021.

As per the Board, on first call the investor has to pay Rs.133.75. The balance of Rs.401.25 will be paid as per Boards decision. The entire rights issue process will be completed in 36 months.

Utilisation of funds:

This is the company’s third fundraising program. It has already raised around Rs.42,000 crore via Rights Issue, Qualified Institutional Placements (QIPs) and Foreign Currency Convertible Bonds (FCCBs) during 2019-2020.

The company would probably intend to spend these proceeds in its 5G operations. Another reason might be the Adjusted Gross Revenues (AGR) payments.

Apart from fund raising through Rights issue, the chairman Sunil Bharti Mittal also talked about tariff hikes. Stock Market reacted positively to this news.

Brokerage Target:Several brokerage agencies have raised the target price of the share.

Bharti Airtel rights issue to open on October 05, 2021 and closing on October 21, 2021. The board approved the plan to raise 21000 crore via rights issue as on August 29. The stock zooms to 730 level from 600 level after the announcement. Bharti Airtel Limited also known as Airtel is one of the multinational telecommunications services company based in Delhi. They have good network around the world

in 18 countries. The right issue will strength the company to take on the rivals in the telecom market. Bharti Airtel is 2nd largest telecom firm in India. Check out Bharti Airtel rights issue dates, price, issue size, ratio, allotment and listing details.

The Board, on Wednesday, September 22, 2021 , has approved the ‘Letter of Offer’ for filing with BSE Limited and National Stock Exchange of India Limited and submission thereof with the Securities and Exchange Board of India (SEBI). The Bharti Airtel rights issue will be 1 equity share for every 14 equity shares held by the shareholders as on the record date that is 28 September.

Important Dates:

Bharti Airtel Rights Issue Date & Price Band

 Issue Open: 05 October 2021
 Issue Close: 21 October 2021
 Issue Size: Approx ₹21000 Crore
 Record Date 28 September 2021
 Price Band: ₹535 Per Share
 Listing on: BSE & NSE
 Ratio:  1:14 (1 rights shares for every 14 shares)
 Equity: 392,287,662 Equity Share

Conclusion:

The RE trading period is from Oct.5 to Oct.14. So, if we wish to subscribe to the shares, the call money of Rs.133.75 has to be paid after Oct.29.

If you want to sell the RE (i.e., if you don’t wish to subscribe the rights share), the last day for selling is today. Right now, it is trading at Rs.200. 

Raghuveer Jandhyala

Editor, Tax Concept. I have written on market, finance, management, and technology.

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