Airtel rights issue worth ₹21,000 crore opens next month – record date, price, ratio and everything else you need to know

• The Airtel rights issue opens next month, allowing eligible shareholders to subscribe to Airtel shares at a discounted price.
  
• The Airtel board had approved fundraising of ₹21,000 crore last month via a rights issue.
  
• The company’s promoter group will fully subscribe to the rights issue. It has a shareholding of 55.8% in the company.
  

The Airtel rights issue worth ₹21,000 crore is opening next month, the telco revealed in its exchange filing. The company had announced last month that it intends to raise funds, and we now have the details of exactly how this will be done.

The Airtel rights issue comes at a crucial juncture for the company, with 5G spectrum auctions looming. While the government has allowed companies to opt for a 4-year AGR moratorium, telcos will still have to shell out funds for buying 5G spectrum expected to take place sometime early next year.

Here are the details of Airtel’s rights issue

Airtel has set the record date as September 28 for its rights issue. This means that every shareholder who is registered as the owner of Airtel shares on this day will be eligible to participate in the rights issue next month.

The rights issue opens on October 5 and will go on till October 21.

For every 14 shares held in the company, shareholders will be able to subscribe to 1 additional share at a price of ₹535. This is a discount of over 26% over the current share price of ₹728, as of 9:45 a.m., on September 23.

According to Airtel’s exchange filing, the company will call on 25% of the issue price after finalising the rights issue, and the remaining 75% will be called upon over the next 36 months.

Additionally, Airtel has also underlined that the promoter group will fully subscribe to the rights issue. This means that 55.8% of the rights issue will be subscribed to by the promoters.

The remaining 44.2% will be available for the public shareholders.

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