Avantel to raise Rs 80.90 crore via rights issue, to expand manufacturing facilities

Avantel Limited , a provider of technology solutions to the defence and communications sectors, today announced that its Board of Directors has approved a rights issue to raise Rs 80.90 crore.

The proceeds will be used to fund capital expenditure for new manufacturing facilities in Andhra Pradesh and Telangana, focused on electronics, antennas, and Ground Station-as-a-Service (GSaaS) infrastructure, as well as for general corporate purposes.

Under the approved structure, the company will issue 2,02,26,100 fully paid-up equity shares with a face value of Rs 2 each, at a price of Rs 40 per share (including a premium of Rs38). Eligible shareholders will be entitled to receive 10 equity shares for every 121 shares held as of the record date, 7 May 2025.

The rights issue will open on Thursday, 15 May 2025, and close on Thursday, 22 May 2025. The last date for on-market renunciation of rights entitlements is Tuesday, 20 May 2025.

The Board also noted that while the issue period may be extended, it will not 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 specialises in the design, development, and maintenance of communication products, radar systems, and network management software applications, primarily serving the aerospace and defence sectors. The company’s expertise spans several technological domains, including satellite communications (SATCOM), radar subsystems, Software-Defined Radios (SDRs), and defence electronics.