Airtel board approves up to Rs 21,000 crore rights issue: filing

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Telecom operator Bharti Airtel's board on Sunday approved up to Rs 21,000 crore rights issue, according to a regulatory filing.

The Board, which met to consider the company's capital raising plans, cleared rights issue price of Rs 535 per fully paid-up equity share, including a premium of Rs 530 per equity share.

In a BSE filing, Airtel said that 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 up to Rs 21,000 crores".

The rights entitlement ratio entails 1 equity share for every 14 equity shares held by eligible shareholders as on the record date.

The terms of payment of issue price, envisage 25 per cent on application and balance in two more additional calls as may be decided by the Board or committee of the Board based on the company's requirements within an overall time-horizon of 36 months, Airtel said.

"The promoter and promoter group of the company would collectively subscribe to the full extent of their aggregate rights entitlement," it said adding "they will also subscribe to any unsubscribed shares in the issue".

The 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.

The Board of Directors at the meeting reviewed the industry scenario, business environment, financial and business strategy of the company and approved the the plan to raise further capital, Airtel said.