Bharti Airtel to open rights issuance in October: here’s how to apply
New Delhi: The Rs.21,000 crore rights issue of telecommunications company Bharti Airtel would begin on October 5, the company said in a regulatory filing on September 22. The closing date for the issue has been set for October 21, 2021.
What is a rights issue?
Rights issues are a common way for companies to raise funds and can be of great benefit to investors as well. This is a rights offering to existing shareholders of a company that allows them to buy additional shares directly from the company at a reduced price rather than buying them on the secondary market.
The number of additional shares that can be purchased is determined by the shareholder’s existing holdings in the shares.
They can choose to exercise the option not to purchase additional shares.
The question of Bharti Airtel’s rights
The issue size was set at “up to 392,287,662 Rights Equity shares,” Bharti Airtel said and reiterated the rights issue price of Rs 535 per fully paid share, including the par value of Rs 5 and a premium of Rs 530 per share. to share.
The rights allocation ratio corresponds to one capital share for 14 capital shares held by eligible shareholders on the registration date.
Notably, the board of directors of the telecommunications company first approved the plan to increase the capital by 21,000 crore rupees via the rights issue on August 29.
The mega fundraiser is sure to give Airtel more firepower as the company takes on rivals in the fiercely competitive Indian telecommunications market.
Bharti Airtel, headed by Sunil Mittal, is the second largest telecommunications company in the three private player markets and, according to subscriber data recently released by the telecommunications regulator, Airtel added 38.1 lakh of subscribers without wire in June, bringing its mobile user base to 35.2 crore.
All shareholders who hold shares in the company before the ex-date, which is determined by the company, are eligible for the rights issue shares.
When announcing a capital increase, the company also informs the shareholders of a registration date. This is the deadline set by the company.
India follows a T + 2 rotation system, which means the departure date is 2 days before the check-in date. An investor, if he wishes to be eligible for the free allocation, must purchase shares before the ex-date date. anyone who purchases the stock on the ex date will not be eligible for this.
How to buy rights issue shares:
- Visit the registrar’s website. The rights issue request option will only be visible once opened. Click on “Request the granting of rights”.
- Select the custodian with which you have an account.
- Enter your information like DP ID, Customer ID, Captcha and click Submit.
- Register your e-mail id and mobile phone number in order to obtain attribution details.
- Then make payment for the number of shares you are entitled to through NEFT’s UPI.
- You will then be notified when the hares are assigned to you.