InvestorQ : Can you tell me about the rights issue of Bharti Airtel?
Arti Chavan made post

Can you tell me about the rights issue of Bharti Airtel?

Rutuja Nigam answered.
1 year ago

The Rs.21,000 crore mega-rights issue of Bharti Airtel will open for subscription on 05-Oct and close for subscription on 21-Oct. The record date for determining eligibility of the rights shares has been fixed at 28th September. Considering the T+2 demat system, therefore the last cum-rights day will be 26th September and the stock will trade ex-rights from 27-Oct. Airtel has fixed the rights price at Rs.535, a steep 26% discount on closing price of Rs.726.

The rights entitlement or the RE will be credited to the eligible shareholder demat accounts by October 04, the day before the rights issue opens. This is the second largest rights issue in India after the Rs.53,000 crore of Reliance Industries last year. Those investors who do not want to exercise the rights can sell the REs through the special RE trading window. In this case, due to the discounted price, Res are expected to trade at a premium of 40-60%.