Bharti Airtel – Rights issue for growth war chest

Event check:

Bharti Airtel (Airtel) is raising up to Rs 21,000 crore via a rights issue at Rs 535 per share, with rights entitlement ratio at one equity share for every 14 equity shares held.

Terms of payment and issue/record date:

Issue price will be 25% (Rs 133.75/share) on application with the balance in two more additional calls within 36 months. The issue opens on October 5, 2021 and closes on October 21, 2021. The record date was September 28, 2021 while the ex-date was September 27, 2021.

Impact on shares:

The overall dilution of share capital will be ~7% at the end of full rights issue completion. Since only 25% of rights issue price to be received on application, proportional implied adjustment is ~1.8%. The rights entitlement will start trading separately from 5th October 2021.

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