Fri. Mar 29th, 2024
Bharti Airtel

India’s second largest telecom Bharti Airtel will be raising ₹35,000 Crore through rights issuance and foreign currency perpetual bond issue.

Airtel‘s board has approved the fund raising plan of ₹32,000 crore of which ₹25,000 crore will be in-fluxed through Rights issuance of fully paid-up equity shares at a price of 220 per share while the remaining ₹7,000 crore will be channeled via foreign currency perpetual bond issue.

The telecom said in a statement that its promoters-Bharti Group and SingTel have agreed to subscribe shares of ₹11,785.7 crore in the ₹25,000-crore rights issue, while Singapore government’s investment arm GIC Pvt. Ltd. will subscribe to shares worth₹ 5000 crore.

“The entire rights entitlement of promoter and promoter group of approx. ₹167,85.7 crore will be subscribed by them and GIC, with promoter and promoter group subscribing to ₹11,7,85.7 crore and GIC subscribing ₹50,00 crore by way of renouncement in their favour,” Airtel said in a statement Thursday.

The company is in the process of appointing banks to take the proposal forward. “The Rights Issue reiterates the confidence of our shareholders in the competitive strength and sound business strategy of Airtel. It shall further strengthen our balance sheet with desired financial flexibility so as to meet future opportunities, particularly in the rapidly transforming Indian mobile market,” Gopal Vittal, MD and CEO (India & South Asia) – Bharti Airtel, said.
With the new capital infusion, the telecom would be using this for expansion of its network and to create content and technology partnership.

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