Bharti Airtel's Rs 21,000 crore rights issue will open on October 5, the company said in a filing to the stock exchanges. The telecom major's right issue will close on October 21, 2021. A total of up to 392,287,662 shares will be offered as part of the rights issue, the company's special committee of directors for rights issue decided at its meeting held on Wednesday, September 22, 2021.
The rights shares will be issued at a price of Rs 535 per fully paid-up share, including face value of Rs 5 and a premium of Rs 530 per share. Eligible investors will receive one share for every 14 shares held as on the record date. The record date for determining shareholders' eligibility to participate in the rights issue has been fixed as September 28.
Bharti Airtel is the second largest telco in the Indian telecom market, with a mobile user base of 35.2 crore. It added 38.1 lakh wireless subscribers in June, as per subscriber data recently released by telecom regulator, Telecom Regulatory Authority of India.
A rights issue or rights offer refers to the rights being offered by a company to its existing share holders to buy additional securities.