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Bharti Airtel gains after board OKs Rs 21,000-cr rights issue

Capital Market 

Bharti Airtel rose 0.98% to Rs 599.75 after the company said its board approved a proposal to raise upto Rs 21,000 crore through rights issue of shares.

In an exchange filing made on Sunday, the teleco said that its board comprehensively reviewed the industry scenario, business environment, financial/ business strategy of the company and approved the company's plan to raise further capital.

Accordingly, 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 upto Rs 21,000 crore.

The rights issue is priced at Rs 535 per share, at a 9.93% discount compared with Bharti Airtel's closing price of Rs 593.95 on Friday (27 August 2021).

With regard to entitlement ratio, the company said that shareholders are entitled for 1 rights share for every 14 equity shares held as on record date.

As per the terms of the issue on payment of the issue price, subscribers need to pay 25% on application and the balance in two more additional calls as may be decided by the board/ committee of the board from time to time based on the company's requirements within an overall time-horizon of 36 months.

Further the teleco's 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 promoter and promoter group of the company will collectively subscribe to the full extent of their aggregate rights entitlement. In addition, they will also subscribe to any unsubscribed shares in the Issue, the company added.

Bharti Airtel is a global telecommunications company with operations in 18 countries across South Asia and Africa.

The teleco reported a consolidated net profit of Rs 284 crore in Q1 FY22 as against a net loss of Rs 15,933 crore in Q1 FY21. Total revenues increased by 15.3% YoY to Rs 26,854 in the first quarter.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, August 30 2021. 09:21 IST