NEW DELHI: Bharti Airtel (Airtel), a leading global telecommunications company with operations in 18 countries across Asia and Africa, Thursday gave further details of its largest capital infusion plan involving a mix of Rights Issue and Perpetual Bond Issue to raise a total of up to INR 320 billion to further bolster its capital structure.
The Board of Bharti Airtel has approved Rights Issue to raise up to INR 250 billion through issuance of fully paid up shares at a price of INR 220 per share and to raise an additional INR 70 billion via the Foreign Currency Perpetual Bond Issue.
[the_ad id=”32940″]The entire rights entitlement of Promoter and Promoter Group of approximately INR 167.857 billion will be subscribed by them and GIC, with Promoter and Promoter Group subscribing to INR 117.857 billion and GIC subscribing INR 50 billion by way of renouncement in their favour.
The Promoter and Promoter Group also reserves the right to subscribe either itself or through investors for additional shares in the issue, including in the event of under-subscription by public, in accordance with the applicable laws.
The Board has additionally provided an in principle approval for the issuance of a foreign currency perpetual bond of up to INR 70 billion, subject to price, market conditions and terms and conditions as acceptable, and such conditions allowing for full accounting equity credit and subject to all applicable laws including under ECB Regulations.
The Company is in the process of appointing banks to take this forward. Highlighting the importance of the Rights Issue and the future roadmap, Gopal Vittal, MD and CEO (India & South Asia) – Bharti Airtel Limited, said, “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. With a solid spectrum pool, and robust networks investment over the last three years, Airtel is well positioned to strengthen and participate decisively in the 4G data market. The fresh capital infusion will help us to continue our investments in future rollouts to build large network capacity and create content and technology partnerships to ensure the best customer experience. We are confident that we will continue to be the brand of choice, especially for the discerning and quality conscious customer.”
GIC has confirmed to subscribe to this renounced entitlement on behalf of Government of Singapore and Monetary Authority of Singapore.
Bharti Airtel Limited is proposing, subject to market conditions and other considerations, a rights issue of its equity shares, and has filed a Draft Letter of Offer with SEBI, a statement said.