Promoters, GIC to pump in Rs 16,785.7 cr into Bharti Airtel via rights issue
MUMBAI: Telecom operator Bharti Airtel’s promoters and Singapore government’s investment arm GIC will subscribe to over half of the proposed Rs 32,000 crore rights issue.
In a statement, Bharti Airtel said that the entire rights entitlement of Promoter and Promoter Group of approximately Rs 16,785.7 crore will be subscribed by them and GIC, with Promoter and Promoter Group subscribing to Rs 11,785.7 crore and GIC subscribing Rs 5000 crore by way of renouncement in their favour.
On 28th February, the Board of Bharti Airtel had approved rights issue to raise up to Rs 25,000 crore through issuance of fully paid up shares at a price of Rs 220 per share and to raise an additional Rs 7,000 crore via the Foreign Currency Perpetual Bond Issue.
The company also said that 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 Rs 7,000 crore, 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 road-map, Bharti Airtel MD and CEO (India & South Asia) Gopal Vittal 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 roll-outs 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,” added Gopal.