Bharti Airtel, which is planning to raise up to Rs 32,000 crore through a mix of rights and perpetual bond issues, intends to use the proceeds to further bolster its capital structure.
The promoters will subscribe to their entire rights entitlement of Rs 16,785.7 crore, with promoters subscribing to Rs 11,785.7 crore and GIC subscribing to Rs 5,000 crore by way of renouncement in their favour, the company said in a statement.
The promoters 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 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) at Bharti Airtel said.
“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,” he added.
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 certain conditions. For this, the company is in the process of appointing banks, it said.
Bharti Airtel’s board had approved to raise up to Rs 25,000 crore through a rights issue of fully paid up shares at a Rs 220 per share and to raise an additional Rs 7,000 crore via the Foreign Currency Perpetual Bond Issue.
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