Airtel rights issue of Rs 25,000 crore to open on May 3

Bharti Airtel said the rights issue of Rs 25,000 crore will open on May 3 and close on May 17.
Airtel 4G quality networkBharti Airtel said its board of directors in a meeting held on Friday approved the rights issue that will assist the telecom operator to enhance its Capex in mobile network.

Last date for receiving request for split application form is May 10, 2019, Airtel said in a note to stock exchanges.

Airtel has already fixed April 24 as the record date to determine shareholders’ eligibility to apply for the equity shares.

Airtel has announced rights issue to raise up to Rs 25,000 crore through issuance of fully paid-up shares at a price of Rs 220 per share, and additional Rs 7,000 crore through a foreign currency perpetual bond issue.

The company said the capital infusion will help it continue investments in future roll-outs to build large network capacity and create content and technology partnerships to ensure the strong customer experience.

Airtel, which has 2G, 3G and 4G networks, has a 4G customer base of 77.1 million in 2018.

Airtel’s network towers in India reached 175,300 in 2018 as compared to 163,808 network towers in 2017. Airtel had 164,859 mobile broadband towers.

The company had 371,562 mobile broadband base stations in 2018 vs 259,002 mobile broadband base stations in 2017.

Airtel’s Capex reached Rs 3,727 crore in the December quarter of 2018, primarily to enhance its mobile data network coverage. In addition, Airtel invested Rs 239 crore towards boosting its wired broadband coverage.

Airtel received commitment from its single-largest shareholder Singtel, promoters, and GIC Singapore to participate in the Rs 32,000-crore capital raising program, PTI reported.

SingTel said it will infuse Rs 3,750 crore in Bharti Airtel by subscribing to the proposed Rs 25,000 crore rights issue of the company, while GIC, on behalf of Singapore government and the Monetary Authority of Singapore, has made a commitment of Rs 5,000 crore in the proposed program.