Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

HK Type 4 license through Ballingal Investment Advisors Ltd. ("BIA" or "BIAL")

BACKGROUND
I have 20+yrs experience in Asia doing alternative strategies (i.e. non-delta1 non long-only) in fixed income, equity derivatives, and activist/catalyst/event-driven and long-short equity strategies with most of that time spent managing money. 

4 years in fixed income macro, 8 years running internal hedge fund and 4yrs investment banking at Citi in Japan, 3 years running an Asia multi-strat portfolio at a hedge fund, 4+yrs as an independent special situations analyst.

Pan-Asia Catalysts/Events

Bharti Airtel (BHARTI IN) | Revisiting Core Thesis

Reliance Rights Offer Detailed - Big. $7bn Big. And Interesting

The Reliance Industries [RIL] Rights Offering

SingTel: All-Time Low Implied Stub; Inexpensive Proxy Into Bharti

Quiddity Advisors

Event-Driven

After the relative success of last year's Partially Paid Rights Offer conducted by <a href="https://www.smartkarma.com/entities/reliance-industries-ltd" target="_blank" data-smartkarma-citation="entities:198:1" rel="noopener">Reliance Industries (RIL IN)</a> discussed in basics in <a href="https://www.smartkarma.com/insights/the-reliance-industries-ril-rights-offering" target="_blank" data-smartkarma-citation="insights:39307" rel="noopener">The Reliance Industries [RIL] Rights Offering</a> then in gory detail in <a href="https://www.smartkarma.com/insights/reliance-rights-offer-detailed-big-7bn-big-and-interesting" target="_blank" data-smartkarma-citation="insights:39448" rel="noopener">Reliance Rights Offer Detailed - Big. $7bn Big. And Interesting</a>, <a href="https://www.smartkarma.com/entities/bharti-airtel-ltd" target="_blank" data-smartkarma-citation="entities:953:1" rel="noopener">Bharti Airtel (BHARTI IN)</a> has decided to conduct a Partially Paid Offering of its own. Bharti Airtel, of course, also raised money in a 19 for 67 rights offering in May 2019 followed by a straight equity raise announced in December 2019 and executed in January 2020. On 30 August, Bharti Airtel <a href="https://www.bseindia.com/xml-data/corpfiling/AttachHis/A8DDC574-2296-4A04-9731-8B705D44607E-080745.pdf" target="_blank" rel="noopener">announced</a> that its board had met and approved a Rights Issue to fully-paid up shares which works with a construct called Partially Paid Shares. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/227/562/original/Screenshot+2021-09-02+at+11.46.59+PM.png?1630597694" class="editor-image img-responsive" data-smartkarma-image-id="227562"></figure></section>There are no details yet for the issue period, trading period, and record date but what we do know is that investors<ul>
<li>will get 1 Right for every 14 Shares held</li>
<li>will be entitled to purchase 1 Share at Rs 535/share (vs ~Rs 620/share on the 30th of August) for every Right (or Rights Entitlement ("RE")) that they receive</li>
<li>will only have to put up 25% of the funds in the initial stage (i.e. 25% of Rs 535 or Rs 133.75/share), then there will be subsequent capital calls over the following 36 months (vs 18 months for the Reliance version of the same.</li>
<li>will be able to subscribe for over-allotments to take up the rights of those who let theirs lapse.</li>
</ul>When will we know all the other important things like record date, trading period, etc?I expect it may not take long.Last year's Reliance Rights Entitlement to Partially Paid Shares saw the announcement on 30 April, with more details on the 13th of May 2020 and a record date the 14th, more details on Friday the 15th, then full details out on Sunday the 17th of May with Rights Issue Opening Date on the 20th of May, 6 days after Record Date. These Rights Entitlements situations are funkier than people think. And while they are going to be a tiny portion of one's portfolio, at receipt, there are some really cool aspects.As always, there is more below the fold.

After the relative success of last year's Partially Paid Rights Offer conducted by Reliance Industries (RIL IN) discussed in basics in The Reliance Industries [RIL] Rights Offering then in gory detail in Reliance Rights Offer Detailed - Big. $7bn Big. And Interesting, Bharti Airtel (BHARTI IN) has decided to conduct a Partially Paid Offering of its own. Bharti Airtel, of course, also raised money in a 19 for 67 rights offering in May 2019 followed by a straight equity raise announced in December 2019 and executed in January 2020. On 30 August, Bharti Airtel announced that its board had met and approved a Rights Issue to fully-paid up shares which works with a construct called Partially Paid Shares. There are no details yet for the issue period, trading period, and record date but what we do know is that investors
will get 1 Right for every 14 Shares held
will be entitled to purchase 1 Share at Rs 535/share (vs ~Rs 620/share on the 30th of August) for every Right (or Rights Entitlement ("RE")) that they receive
will only have to put up 25% of the funds in the initial stage (i.e. 25% of Rs 535 or Rs 133.75/share), then there will be subsequent capital calls over the following 36 months (vs 18 months for the Reliance version of the same.
will be able to subscribe for over-allotments to take up the rights of those who let theirs lapse.
When will we know all the other important things like record date, trading period, etc?I expect it may not take long.Last year's Reliance Rights Entitlement to Partially Paid Shares saw the announcement on 30 April, with more details on the 13th of May 2020 and a record date the 14th, more details on Friday the 15th, then full details out on Sunday the 17th of May with Rights Issue Opening Date on the 20th of May, 6 days after Record Date. These Rights Entitlements situations are funkier than people think. And while they are going to be a tiny portion of one's portfolio, at receipt, there are some really cool aspects.As always, there is more below the fold. 

Bharti Airtel Partially Paid Rights Situation