Mumbai, (Asian independent) Share of telecom major Bharti Airtel surged on Monday on the back of the company’s plan to raise Rs 21,000 crore through rights issue.
Its shares on the BSE surged 2.5 per cent to hit an intraday high of Rs 609.25 per share.
Around 11.45 a.m., its shares were trading at Rs 603.00, higher by Rs 9.05 or 1.52 per cent from its previous close.
On Sunday, Bharti Airtel’s Board of Directors approved the raising of up to Rs 21,000 crore through a rights issue.
The issue price has been fixed at Rs 535 per fully paid-up equity share, including a premium of Rs 530 per share.
“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 crore,” the company said in a regulatory filing.
It noted that at the meeting held on Sunday, the board comprehensively reviewed the industry scenario, business environment, and the financial and business strategy of the company and approved the company’s plan to raise further capital.
The terms of payment of issue price will be 25 per cent on application and balance in two more additional calls as may be decided by the board or the committee of the board from time to time based on the company’s requirements within an overall time-horizon of 36 months.
The rights entitlement ratio will be 1 equity share for every 14 equity shares held by eligible shareholders as on the record date.
Further the board has also 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.
