The board “comprehensively reviewed the industry scenario, business environment, financial/ business strategy of the company and approved the company’s plan to raise further capital. Accordingly, the board approved the issuance of equity shares of face value of Rs 5 each of the company on rights basis to eligible equity shareholders of the Company as on the record date (to be notified later), of an Issue size of up to Rs. 21,000 crore,” Airtel said in a notice to the stock exchanges.
The telco’s stock ended 1.2% higher at Rs 593.95 on the BSE Friday.
As per the terms of the issue on payment of the issue price, subscribers need to pay 25% on application and the 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.
“Rights Entitlement Ratio: 1 equity share for every 14 equity shares held by eligible shareholders as on the record date,” the telco said.
Further, the Board has constituted a ‘Special Committee of Directors’ to decide the other terms and conditions of the Issue including Issue period and the record date.
“The promoter and promoter group of the company will collectively subscribe to the full extent of their aggregate rights entitlement. In addition, they will also subscribe to any unsubscribed shares in the Issue,” Airtel said.
