Bharti Airtel on August 29 said that its Board of Directors have approved to raise capital up to Rs 21,000 crore by issuing equity shares of face value of Rs 5 each of the company.
The firm said that the board approved the right issue price to be set at 535 per fully paid-up equity share, including a premium of Rs 530 per equity share.
“25% on application and balance in two more additional calls as may be decided by the Board/ Committee of the Board from time to time based on the Company’s requirements within an overall time-horizon of 36 months,” the firm said in a regulatory filing. Among other details, the telco said that one equity share for every 14 equity shares held by eligible shareholders as on the record date.
The telco board also constituted a ‘special committee of directors’ to decide the other terms and conditions of the issue including issue period and the record date.
Earlier on August 25, MoneyControl reported that Bharti Airtel will consider fresh capital raising options on August 29. The firm had said that it will explore the options to raise capital via equity or debt instruments.
The announcement, which is pursuant to the Sebi Regulations, 2015, was made at a time when Airtel, along with rival Vodafone-Idea (Vi), is reeling under financial challenges.
The telecom companies recently faced a setback on the issue involving adjusted gross revenue (AGR)-related dues, as the Supreme Court dismissed the applications which sought re-calculation of dues. MSN