Bharti Airtel the telecom major has announced a rights issue of 39.3 crore equity shares aggregating up to Rs. 21,000 crores. The company will issue RIghts Entitlements (REs) to anyone who holds its shares as of September 28, 2021 (record date).
You will be eligible to receive Rights Entitlements (REs) if you have bought shares on or before September 24, 2021. The ex-date is September 27, 2021. These REs will be temporarily traded on the stock exchanges and will then be extinguished. You can either use the REs to apply for the rights shares of Bharti Airtel or you can sell them in the market.
You can check the announcement from the company here.
Issue Details
| Ex-date | September 27, 2021 |
| Record Date | September 28, 2021 |
| Ratio | 1:14 |
| Issue Price | â‚ą 535 per share |
| Issue Period | October 5, 2021 to October 21, 2021 |
| RE Trading Period | October 5, 2021 to October 14, 2021 |
| Tentative date of credit | October 29, 2021 |
| Tentative date of listing | November 2, 2021 |
This is a partly-paid issue, meaning at the time of application you only have to make part payment.
| Amount payable per equity share | Face Value | Premium | Total |
|---|---|---|---|
| On Application | 1.25 | 132.5 | 133.75 |
| Two more additional calls as may be decided by the company | 3.75 | 397.5 | 401.25 |
| Total | 5 | 530 | 535 |
If you continue holding Bharti Airtel partly-paid shares when the company makes a call for the balance payment, you will be liable to pay the balance sum. Alternatively, if you sell the partly-paid shares, the buyer will be liable to pay the sum.
How to apply for the Bharti Airtel Rights Issue?
Once you either receive the REs from the company or purchase them from the market, you will need to apply for the rights shares using Netbanking ASBA. You can check the process in this post.
You can also apply for rights shares through the website of the Registrar and Transfer agent.
You will need to enter your demat account’s Beneficiary Owner ID which is a 16-digit number while applying either on the RTA’s website or through your bank.
What will happen to my purchased holding of RE shares if I do not apply for the rights issue?
Your REs will lapse and you will lose the premium paid to acquire them. The RE will be in the form of temporary demat securities which will lapse if not renounced/exercised once the trading window is closed.
I don’t have the shares but bought REs, am I still eligible to apply for the rights issue?
In case you have bought REs but don’t have shares, you’re still eligible for the rights issue. You may apply for the rights shares either through the RTA’s portal or via net banking ASBA if your bank allows it. If you don’t take any action, and let the REs remain in your Zerodha account, they will lapse after the issue.
You can read more FAQ’s on Rights Issue and Rights Entitlements here.
Image credits: Steve Jurvetson, Flickr.