Avantel Announces Rs 80.90 Crore Rights Issue to Boost Manufacturing and Service Infrastructure

Avantel Limited, a leading technology provider in the defence and communication sectors, has unveiled plans to raise Rs 80.90 crore through a rights issue aimed at expanding its manufacturing and service infrastructure in Andhra Pradesh and Telangana. The company’s board has approved the issuance of 2,02,26,100 fully paid-up equity shares at Rs 40 per share (including a premium of Rs 38), with a face value of Rs 2 each. Eligible shareholders will be entitled to receive 10 new shares for every 121 shares held as of the record date, May 7, 2025.

 

The rights issue will open on May 15, 2025, and close on May 22, with a potential extension not exceeding 30 days from the opening date. Upon full subscription, Avantel’s equity base will expand from 24,47,35,820 shares to 26,49,61,920 shares.

 

Proceeds from the issue will be utilized to enhance manufacturing capabilities, establish new facilities for electronics, antennas, and satellite communication systems, and set up Ground Station as a Service (GSaaS) infrastructure. This move is expected to strengthen Avantel’s offerings in software-defined radios, communication-on-the-move solutions, and defence electronics, while also supporting general corporate purposes.

 

Source: Economic Times Manufacturing