Bharti Airtel, the telecom giant, has announced a massive 21,000 crore rights offering that would begin on Tuesday. Airtel’s board of directors authorised a rights issue in August, amid efforts to expand its network and prepare for the launch of 5G services, at a price of 535 per share, including a Rs.230 premium.
Airtel, which was founded in 1995, is the world’s second-largest telecommunications company, based on total mobile connections across all consolidated subsidiaries. The firm has roughly 474 million clients worldwide and is present in 18 Asian and African countries.
According to Divam Sharma, Co-founder of Green Portfolio , “Among the three large telecom players, Bharti Airtel is our preferred bet. Airtel is expected to benefit from the weakening of VIL and has also taken a leadership stance w.r.t raising of tariffs, which will significantly affect profitability and cash flows.”
The telecom behemoth Bharti Airtel’s 21,000-crore rights offering will start on Tuesday (October 5) and end on October 21. Bharti Airtel stockholders whose names were in the company’s record book as of September 28 would get one share for every 14 owned at a price of $535 per unit.
The stock markets will start on Tuesday and end on October 14 for Bharti Airtel rights entitlement (RE). Existing shareholders can sell their RE during the window, while those who want to apply for the $21,000-crore rights offering must first get a permission. One RE entitles a shareholder to subscribe for one rights issue share.
On a rights basis, the firm is offering approximately 39.23 crore partially paid-up equity shares with an FV of $5 apiece. Shareholders will be required to pay 25% of the issue price, i.e. 133.75, together with the application in the first instalment, with the remainder due on two additional calls.
There are two methods to apply for the Bharti Airtel Rights Issue:
- Net Banking (ASBA)
- Registrar’s Website (R-WAP Facility)
How to Use Net Banking to Apply for Bharti Airtel Rights Issue (ASBA)
- Log in to your bank’s internet banking account.
- Go to the section under “IPO & Rights Issue.”
- Look to see whether the Bharti Airtel Rights Issue is on the list.
- Next to the Bharti Airtel Rights Issue, click the Apply button.
- Fill in the blanks and double-check your answers.
- Fill out the application and submit it.
How to use the Registrar’s website to apply for Bharti Airtel Rights Issue (R-WAP)
- Visit the registrar’s website for further information.
- Go to the ‘Rights Issue’ area of the website.
- From the selection menu, choose Bharti Airtel Rights Issue.
- Please enter your Demat Account Number.
- Complete the online application.
- Validate the application and submit it.