Bharti Airtel Rights Issue: From record date, timeline to key details - All investors need to know

Bharti Airtel Rights Issue: In an important development, the Special Committee of Directors for Rights Issue ('Committee'), at its meeting, has approved the record, opening and closing date of the Bharti Airtel Right Issue. We list all the important details about this issue, including timeline and dates, an investor would want to know. Read on: 

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What is Right Entitlement?

As per NSE, 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.

Regarding this, Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Sevices said, "Bharti Airtel's rights issue at Rs 535 a share is attractively priced considering the current market price of around Rs 730. The recent telecom package declared by the government addresses most of the issues that the industry has been facing for some time now. India's telecom industry is now practically a duopoly with Ril Jio and Bharti Airtel dominating the industry. Bharti's 35 crore customers, growing steadily, and the launch of 5 G shortly bode well for the company in the years ahead."

Bharti Airtel Rights Issue key details

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

Last Date for credit of Rights Entitlements - October 4, 2021
Start Date for RR Form Trading - October 5, 2021
Last Date for On Market Renunciation - October 18, 2021
Finalisation of Basis of Allotment (on or about) - October 26, 2021

Date of Allotment (on or about) - October 26, 2021
Date of credit (on or about) - October 27, 2021
Date of listing (on or about): October 28, 2021.

Bharti Airtel Rights issue other important details

Issue Size: up to Rs 210 bn (only 25 per cent will be collected on application)
Issue Price: 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)

Note: 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.