Business / Airtel clears Rs 32,000 crore rights issue

Billionaire Sunil Mittal-led Bharti Airtel said that its board of directors has approved a plan to raise Rs 32,000 crore through a mix of rights issue & bonds, a move that will give the telecom major moneybags to take on sector disruptor Reliance Jio. Airtel's announcement came days after parent firms Vodafone & Aditya Birla Group said they will infuse over Rs 18,000 crore into the country's largest telecom operater.

Airtel's announcement came days after parent firms Vodafone and Aditya Birla Group said they will infuse over Rs 18,000 crore into the country's largest telecom operator Vodafone Idea Ltd through a rights issue.

The Board of Directors has approved the fund raising of upto Rs 32,000 crore through rights issuance of upto Rs 25,000 crore and Perpetual Bond with equity credit upto Rs 7,000 crore, an Airtel statement said.

"The terms of the rights issue cleared by the Board include price of Rs 220 per fully paid equity share (a premium of Rs 215 per fully paid equity share over face value of Rs 5 per share); and a rights entitlement ratio of 19 shares for every 67 shares held by eligible shareholders," the statement added.India's telecom sector, world's second largest in terms of subscriber base, is going through a debilitating financial crisis due triggered by Richest Indian Mukesh Ambani-led startup Jio's free voice calls and dirt-cheap data.