Everything You Need to Know About the Bharti Airtel Rights Issue

[ShubhS9]

@Devesh_Bhuwad

I see 6 RE shares in my holdings. I don’t wish to purchase additional 6. I’m happy with my 84. What should I do ?

If you do not intend to apply for rights shares, you can sell the RE’s in the market, just like you sell any other shares.

@Devesh_Bhuwad

I see 6 RE shares in my holdings. I wish to buy them. What’s the process to pay for those 6 ? I usually pay up by UPI on Kite and purchase shares

You will have to make an application either through Netbanking ASBA or RWAP portal. The application process has been explained above in the main post.

[Devesh_Bhuwad]

Thanks Shubh.

1. So the REs that I see in my holdings, these are credited in my Demat is what I understand and will be settled T+2

2. If I buy through the process, the price of purchase will be 204.95 at which I buy or 535 as they quoted per the calculation ?

[kapilatp]

I am a novice to RIGHTS issues.
I have 100 Airtel shares in my holdings; 7 new Airtel-RE-Be shares have hit my account today.
To hold the 7 new Airtel-Re_Be shares, I registered the 7 RE shares through HDFC bank. Though the request is successfully submitted through HDFC bank, the amount had not been deducted from HDFC bank account.
i. What are the further steps that I need to take ?
ii. Should I allow to lapse the 7 Airtel-Re-Be shares that sit in my holdings, Since I subscribed through HDFC bank?
iii. Do the 7 new Airtel_Re_Be will be auto-converted to BHARTIARTL shares and will be shown in my Holdings at Zerodha (Of course, After some days after the due process) ?

[ShubhS9]

@kapilatp

Should I allow to lapse the 7 Airtel-Re-Be shares that sit in my holdings, Since I subscribed through HDFC bank?

As you have applied for the rights shares, you need to hold the RE’s in your account. As the RTA will check for RE’s held in your demat account to do the allotment.

@kapilatp

Do the 7 new Airtel_Re_Be will be auto-converted to BHARTIARTL shares and will be shown in my Holdings at Zerodha (Of course, After some days after the due process) ?

Once the issue closes for subscription and allotment is done the REs will be extinguished and shares of BHARTIARTL will be credited to your demat account and will reflect in your Kite holdings upon listing. The tentative date of listing is November 1st.

[ShubhS9]

@Devesh_Bhuwad

So the REs that I see in my holdings, these are credited in my Demat is what I understand and will be settled T+2

Yes, the RE’s are already credited to your demat account. T+2 settlement is only in case you buy from secondary market.

@Devesh_Bhuwad

If I buy through the process, the price of purchase will be 204.95 at which I buy or 535 as they quoted per the calculation ?

This is partly-paid issue. At the time of making application, you only have to pay Rs. 133.75.

For the remaining payment, company will make further calls. 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.

[alwaysshri]

Do anyone see the option to apply for this rights issue in onlinesbi or axis bank?
I dont see it yet.

[ankurj]

Applying for and paying for rights issue is an unnecessary complicated process and the problem gets compounded when you have to pay in 2-3 installments. You miss paying just one of the calls and all your paid up money for RE will vanish.
Moreover, even prominent banks do not support payment for RE issues. Last time in ABFRL RE case, none of the big banks supported the RE issue. It was only via Yes Bank that I could pay.

Perhaps some good sense should prevail in SEBI and they should let the money be paid via our regular broker account. Far easier and hassle free.

What say @nithin ?

[nithin]

@ankurj

Applying for and paying for rights issue is an unnecessary complicated process and the problem gets compounded when you have to pay in 2-3 installments. You miss paying just one of the calls and all your paid up money for RE will vanish.
Moreover, even prominent banks do not support payment for RE issues. Last time in ABFRL RE case, none of the big banks supported the RE issue. It was only via Yes Bank that I could pay.

Perhaps some good sense should prevail in SEBI and they should let the money be paid via our regular broker account. Far easier and hassle free.

What say @nithin ?

Yep, we have taken this up with SEBI already.

[Gaurav_Bhandari]

I’m using Axis bank and I’m not able to see it. Is there any other alternative to apply for this. @ShubhS9 please can you help. I’m new to this process.

[ShubhS9]

@Gaurav_Bhandari

I’m using Axis bank and I’m not able to see it. Is there any other alternative to apply for this. @ShubhS9 please can you help. I’m new to this process.

You can apply through RTA’s website.

[Gaurav_Bhandari]

Thanks a lot. It is showing an option today to invest. Yesterday it was not there.

[SriKamalPuvvada]

Hi, I am entitled for 2 shares as per record date. In rights kfintech website there is an option to buy any number of shares. Will I get as many shares I pay or is that like a IPO? Sorry if this is already answered

[nithin_kumrr]

You can apply for more shares than RE’s you have, But the allotment will be guaranteed only for the no of REs you hold. If you don’t receive an allotment, your remaining amount will be refunded to your bank account.

You can refer to this support article.

[ShubhS9]

@Gaurav_Bhandari

I don’t see this Rights issue in my ASBA bank account. Can you please help with alternatives?

You can apply through RTAs website.

@SurenBabu

Neither https://rights.kfintech.com/airtel/ has a way to apply.

The RWAP option for making application is now available on the website.

[Sagar_Sharma]

I’ve few queries on Airtel right entitlement, I got two Airtel RE and also bought 300 more Airtel RE… wondering if additional 300 Airtel RE will make me eligible for 300 more share of Airtel after applying for it ? Does 1 Airtel RE = 1 share after application and paying rest amount? Or 1 RE holder can apply for any no. of bhartiAirtel shares? Buying more RE worth for already allocated RE homdwrs?

[ShubhS9]

@Sagar_Sharma

wondering if additional 300 Airtel RE will make me eligible for 300 more share of Airtel after applying for it ? Does 1 Airtel RE = 1 share after application and paying rest amount? Or 1 RE holder can apply for any no. of bhartiAirtel shares? Buying more RE worth for already allocated RE homdwrs?

Even if you have 1 RE, you can apply for any number if rights shares you wish to, but allotment will be guaranteed only for 1 share. The remaining will depend on the subscription and will be alloted randomly. If you don’t receive the allotment, the amount will be refunded.

In your case, as you have 300 REs, you can apply for 300 shares (you can apply for more as well) but as explained above, guaranteed allotment will be only to the extent of REs held.

[shubham_sharma3]

Hello, I have just started investing in stock market so I am a complete novice. I have few airtel stocks but less than 14 so dont qualify for the RE.
So will this RE affect my current stocks? And if I want to buy RE and its trading at around 210, will I get a stock of airtel but airtel current value is around 690. So I am little confuse about how does this all work?
I will be thankful if anyone van help me.

[Shravan_B_K]

@shubham_sharma3

So will this RE affect my current stocks?

No

@shubham_sharma3

And if I want to buy RE and its trading at around 210, will I get a stock of airtel but airtel current value is around 690

@ShubhS9

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.

As explained above, this is a call for partly paid share. Post buying the REs from the market if you can apply for the right issue as per the process explained here

@ShubhS9

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.

Then, post the issue period partly paid shares will be credited to your demat account. You can either keep these partly paid shares and make further payments when the company makes subsequent calls or sell these partly paid shares. If you hold these and make all the call payments, then you will receive the fully paid shares of Airtel. It is a long process. However, one thing to be careful about is if you buy these REs now, please don’t forget to apply for the rights issue as REs will lapse and you will lose the premium paid to acquire them if you don’t apply. Alternatively, you can even sell these REs before October 14th.

[Shivam_Gupta]

One question why should one buy these rights issue (through ASBA)?
What is the advantage of having them since somehow we have to pay the remaining money later or in installments?
*ps: don’t know much about rights issue

[Shravan_B_K]

@Shivam_Gupta

why should one buy these rights issue (through ASBA)?

REs are alloted to you if you hold the shares of Airtel before the ex-date. However, you can worry also buy them directly from the market during the period when they trade - Oct 5th to Oct 14th in this case. After this you will have to follow

@ShubhS9

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.

Post this you will be allotted partly-paid shares of the company in your demat account. These are also tradeable instruments. You can either keep these partly paid shares and make further payments when the company makes subsequent calls or sell these partly paid shares or sell them when they are trading. If you hold these and make all the call payments, then you will receive the fully paid shares of Airtel. Coming to the advantage part of your question, the rights issue is at a price of Rs. 535 which is at a discount to the current market price of the stock.

@Shravan_B_K

However, one thing to be careful about is if you buy these REs now, please don’t forget to apply for the rights issue as REs will lapse and you will lose the premium paid to acquire them if you don’t apply. Alternatively, you can even sell these REs before October 14th.