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a) Bharti Airtel plans to expand its network and prepare for the launch of 5G services. The board had approved raising up to 21,000 crore by issuing additional ordinary shares to its existing shareholders on a pro-rata basis of one new share for each fourteen equity shares of Bharti Airtel. The financial advisers to the corporation have recommended the use of an underwriting facility. Using this information, answer these questions.
(i) What type of issue is Bharti Airtel making to its shareholders? What are the features of this type of issue? (ii) What is an underwriting facility, and why might Bharti Airtel use such a facility?
This document contains various important questions and their appropriate answers in the subject field of Economics.
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