Bharti Airtel rights entitlement hits 40% upper circuit at Rs 204.50

Bharti Airtel’s rights entitlements (REs) were locked in the 40 per cent upper circuit at Rs 204.50 on the BSE on Tuesday, the first day of listing. The stock opened at Rs 191, a 31 per cent premium over its intrinsic value, which is the difference between Bharti Airtel share price and rights issue price of Rs 535. It has hit a low of Rs 151.10 in intra-day trade so far. Till 12:19 pm, around 3.90 million REs had changed hands on the counter and there were pending buy orders for 622,148 REs on the BSE, the exchange data shows.

“REs for Renunciation shall be settled on T+2 rolling settlement basis. The trades shall be settled on a trade-for-trade basis. REs only gives the right to participate in the ongoing Rights Issue of the concerned company by making an application with requisite application money or renounce the REs before the issue closes,” BSE said in a notice dated October 1, 2021.

REs which are neither subscribed by making an application with requisite application money nor renounced, on or before the issue closing date shall lapse and shall be extinguished after the issue closing date, it added. CLICK HERE FOR NOTICE

The trading in RE of Bharti Airtel commenced today and will remain open till October 14. The special trading window will allow shareholders, who don’t wish to subscribe to the rights issue, sell their REs though. This platform gave shareholders an opportunity to gain some value from eligible RE shares.

Meanwhile, the company’s Rs 21,000-crore rights issue opened today and will run till October 21. The telecom services provider had fixed Tuesday, September 28, 2021, for the purpose of determining the shareholders who shall be eligible to receive the rights entitlement in the issue. The company will issue one equity share of Rs 5 each on a rights basis for cash at a premium of Rs 530 per share for every 14 equity shares held on the record date.

As far as terms of payment of the issue price are concerned, 25 per cent is to be paid on application, balance in two more additional calls as may be decided by the board or committee, based on the company’s requirements within an overall time horizon of 36 months. The promoter and promoter group of the company will collectively subscribe to the full extent of their aggregate rights entitlement along with any unsubscribed shares in the issue.

Meanwhile, the stock of Bharti Airtel was up 2 per cent at Rs 695.85, after hitting an intra-day high of Rs 697.40 on the BSE today. It had hit a record high of Rs 739.10 on September 24, 2021.