Bharti Airtel Assures that Promoters will Participate in Rights Issue Worth Rs 25,000 Crore

Bharti Airtel

On Thursday, Bharti Airtel the major telecom company of India said that Bharti Airtel promoters would be taking part in the capital infusion plan by subscribing to its rights issue. The capital infusion plan is of worth 32,000 crore rupees. GIC Private Limited which is a Singapore government’s investment wing will be subscribing to more than half of the proposed rights issue in a tender to invest in the company.

The major shareholders of Singtel and Airtel namely, Bharti Group and Bharti telecom plan to subscribe to their entire entitlement apart from renunciation by Bharti Telecom towards GIC Singapore, Singtel mentioned.

The full rights entitlement of the promoter group and promoter is around Rs 167,857 million which will be subscribed to the promoters and GIC, Bharti Airtel mentioned in a statement.

The promoter and promoter group will be subscribing to Rs 117,857 million of shares and GIC will be subscribing to Rs 50,000 million of shares. Singtel promoter will be subscribing to 170 million of shares in the rights issue of Airtel; the total consideration is of about 37.5 billion rupees, the Singapore based company mentioned in a specific statement.

To increase the rights issue fund to 25,000 crore rupees, the plan was sanctioned by the Bharti Airtel board via the issuance of entirely paid up shares for Rs 220 each share and also to raise extra 7,000 crore rupees fund through foreign currency perpetual bond issue.

S&P Global Ratings has mentioned that the rights issue that has been planned by Bharti Airtel of around Rs 25,000 crore is not enough to settle its credit rating.

Airtel is dealing with the process of appointing banks to implement this plan. Bharti Airtel further said that the rights issue reaffirms the shareholders with the competitive strength and with the stable business strategy of Airtel. This will further allow us to enhance our balance sheet along with desired financial flexibility so that the forthcoming challenges are met especially in the evolving mobile market of India.

The fresh capital infusion plan will assist the company in making investments in the subsequent rollouts so as to create a large network capacity and to develop content and create technology partnerships to offer the best customer practice.

Leave a Reply

Your email address will not be published. Required fields are marked *