Bharti Airtel’s board on Thursday constituted a committee to explore options for raising funds to strengthen the company’s balance sheet.
According to sources, the company plans to raise around ₹15,000 crore to reduce debt and manage capital expenditure.
“We wish to inform that the board of directors (board) has formed and authorised a ‘Special Committee of Directors for Fund Raising’ to comprehensively explore/evaluate various options of fund-raising to strengthen the company’s capital structure and balance sheet and place the final recommendation before the board for its approval and final decision,” the company said in a filing to the BSE.
In a separate decision, the board also decided to sell 32 per cent of its holding in Bharti Infratel (Infratel), reducing its stake to 18.33 per cent (from 50.33 per cent).
The board said that subject to the approval of shareholders, it has approved sale/transfer of up to 591.87 million equity shares (32 per cent) of Infratel to its wholly-owned subsidiary, Nettle Infrastructure Investments Limited (Nettle), in such tranche (s), at such time(s) and on such terms and conditions, as may be deemed fit.
After completion of the above transfer (subject to the approval of shareholders), the shareholding structure of Infratel will be Bharti Airtel Limited - 18.33 per cent, Nettle 35.18 per cent and public/other shareholders - 46.49 per cent, it said.
In another decision, the board also accepted the resignation of Nilanjan Roy, Global CFO and a ‘key managerial personnel’ (KMP) of Airtel. Roy will serve till February 28, and Badal Bagri will be the new CFO and KMP with effect from March 1.
Shares of Bharti Airtel closed at ₹316.15 on the BSE on Thursday, down 1.89 per cent from the previous close.
Bharti Infratel shares closed at ₹261.75, down 0.85 per cent from the previous close.