Avantel to Raise ?80.90 Crore via Rights Issue to Expand Manufacturing Capabilities
National,
2nd May 2025: Avantel
Limited (BSE: 532406 & NSE: Avantel Limited), a leading provider of
technology solutions for the defence and communication sectors, announced today
that its Board of Directors has approved a rights issue to raise ?80.90 crore.
The funds will be utilised to
enhance the company’s manufacturing capabilities and infrastructure in Andhra
Pradesh and Telangana. This includes capital expenditure for setting up new
facilities dedicated to the design, development, and production of electronics,
antennas, and satellite communication systems. The investment will also support
the establishment of Ground Station as a Service (GSaaS) infrastructure to
offer satellite data reception services and help strengthen Avantel’s
capabilities in areas such as software-defined radios,
communication-on-the-move solutions, and antennas for defence and aerospace
applications. A portion of the proceeds will also be allocated towards general
corporate purposes.
As per the approved structure,
the company will issue 2,02,26,100 fully paid?up equity shares with the face
value of ?2 each at a price of ?40 per share, including a premium of ?38. The
offer entitles eligible shareholders to receive 10 equity shares for every 121
shares held as of the record date, May 7, 2025.
The right issue will open on
Thursday, May 15, 2025.and close on Thursday, May 22, 2025. The last for on
market renunciation of rights entitlements is Tuesday, May 20, 2025.
The board also noted that the
issue period may be extended but cannot exceed 30 days from the opening date.
Upon full subscription, the company’s equity base will increase from
24,47,35,820 shares to 26,49,61,920 shares.
Avantel
Limited specializes in designing, developing, and maintaining communication
products, radar systems, and network management software applications,
primarily catering to the aerospace and defence sectors. The company's
expertise spans various technological domains, including satellite
communications (SATCOM), radar subsystems, Software-Defined Radios (SDRs), and
Defence Electronics.
About
Avantel Limited
Founded
by Dr. Vidyasagar Abburi, Avantel Limited has been at the forefront of
strategic communication solutions for over three decades. Specializing in
advanced communication products, radar systems, should be and network
management software. Avantel’s expertise spans satellite communications
(SATCOM), radar subsystems, Software-Defined Radios (SDRs), and defence
electronics. The company is dedicated to strengthening national security and
contributing to India’s self-reliance in critical technology areas.