Airtel RE trading set to commence

The trading in rights entitlement (RE) of Bharti Airtel will commence on Tuesday and will remain open till October 14. Under this window, existing shareholders will get to sell their RE, while those who wish to participate in the ~21,000-crore rights offering will get to buy the permit to apply. One RE gives a shareholder right to subscribe to one share in the rights issue programme, which will remain open till October 21. Analysts expect one RE to trade in the range between ~180-200 per unit. Shares of Airtel last closed at ~676, while the rights issue price is ~535 per share. ETFS will sell their RES as they are not allowed to subscribe for shares in the rights issue. Last year, trading in Reliance Industries RE had seen huge investor interest.