Bharti Airtel Rights Issue attractively priced, says VK Vijayakumar of Geojit Financial Services; know full details as record date set on 28 September

Bharti Airtel Rights Issue: Ex-date for the rights issue of Bharti Airtel will be on Monday (7 September). The rights issue of India’s second largest telecom player will open on 5 October and close on 21 October 2021. The record date is September 28, 2021. The Special Committee of Directors for Rights Issue ('Committee'), at its meeting on Thursday approved the record, opening and closing date of the Bharti Airtel Right Issue.

The ex-date is one business day before the date of record.

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A right is issued by a company to its shareholders on a pre-determined date called the record date. Rights entitlements are offered to shareholders as a ratio to the number of securities held on this record date. A shareholder may refuse to subscribe to the rights issue and just let the 'right' lapse. Alternatively, the shareholder can renounce/trade the entitlement in favour of another person for a price.

Investors willing to put their money must know the expert view on the rights issue.

"Bharti Airtel's rights issue at Rs 535 a share is attractively priced considering the current market price of around Rs 730,” VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.

The recent telecom package declared by the government addresses most of the issues that the industry has been facing for some time now, he added.

India's telecom industry is now practically a duopoly with Ril Jio and Bharti Airtel dominating the industry, he further said.

“Bharti's 35 crore customers, growing steadily, and the launch of 5 G shortly bode well for the company in the years ahead, Vijayakumar said.

We list all the important details about this issue, including timeline and dates, an investor would want to know:

Bharti Airtel Rights Issue key details

Ex-date – September 28, 2021
Record date - September 28, 2021
Issue opening - October 5, 2021
Issue closing - October 21, 2021
ISIN for Right Entitlement - INE397D20024

Bharti Airtel Rights Issue timeline and tentative dates

1. Last Date for credit of Rights Entitlements - October 4, 2021
2. Start Date for RR Form Trading - October 5, 2021
3. Last Date for On Market Renunciation - October 18, 2021
4. Finalisation of Basis of Allotment (on or about) - October 26, 2021
5. Date of Allotment (on or about) - October 26, 2021
6. Date of credit (on or about) - October 27, 2021
7. Date of listing (on or about): October 28, 2021.

The issue size is Rs 21000 (only 25 per cent will be collected on application) while the issue price is Rs 535 per fully paid-up equity share.

Amount to be paid on Application: Rs 133.75 will be required to be paid on the application and rest 75 per cent (Rs 401.25) in two instalments

Rights ratio: 1:14 (1 share for every 14 shares held).

Terms of payment of Issue Price: 25 per cent on application and balance in two more additional calls (based on the Company’s requirements within an overall time-horizon of 36 months)

 The above details are as per Edelweiss Alternative Research

Will Promoter participate?

Yes, the promoter and promoter group of the Company will collectively subscribe to the full extent of their aggregate right. In addition, they will also subscribe to any unsubscribed shares in the Issue.

Are Partly Paid Right Equity Holders entitled to dividends?

Yes, the holders of Right shares are entitled to dividend (if any paid) in proportion of face value.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)