Bharti Airtel gains 4.25 percent after board approves Rs 21,000-crore rights issue
Published On: Monday, August 30, 2021 | By: Team KnowMyStock
Shares of telecom services provider Bharti Airtel gained 4.25 per cent and traded at Rs 625 on the BSE in the intra-day trade on Monday after the Company announced Rs 21,000-crore rights issue , as the telecom operator seeks to expand its network amid intense competition with Reliance Jio Infocomm Ltd. The board fixed the sale price for the rights issue at ₹535 apiece, at a 1:14 ratio, implying a 7 per cent equity dilution, with 25% of the amount to be paid on application and the balance in two more tranches, based on the company’s requirements, within 36 months. The promoter and promoter group of the company will collectively subscribe to the full extent of their aggregate rights entitlement along with any unsubscribed shares in the issue. Bharti Airtel’s promoter group led by Sunil Mittal owns a 55.86% stake in the company.
The fundraising will help the company bolster its balance sheet to invest in building a fifth-generation, or 5G, telecom network, strengthen its existing network to compete with Reliance Jio and pay adjusted gross revenue-related (AGR) liabilities, among other dues. Airtel did not say how it will use the proceeds of the share sale.
On Sunday, the company’s board also reviewed the industry scenario, business environment and the financial and business strategy of the company.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
