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Bharti Airtel on Friday closed the rights issue of up to ₹24,939 crore, which would help the company cut its debt of more than ₹1.12-lakh crore. The company’s biggest rights issue of around ₹25,000 crore was open between May 3 and May 17, the closing date.
The rights issue has been oversubscribed going by the disclosure made by the company to the stock exchanges.
“The company would like to bring to your notice that based on preliminary information received the rights issue has been oversubscribed,” Airtel said in a filing to the stock exchanges.
The right issue consisted of an issue of fully paid-up shares at ₹220 a share and a foreign currency perpetual bond issue worth ₹7,000 crore.
The board of directors of the company, on April 19, had approved the rights issue, and had said that the capital infusion will help it continue to invest in building large network capacity, and create content and technology partnerships to ensure strong customer experience.
This is the fourth attempt by the Sunil Mittal-led company to cut its debt, which has accumulated due to stiff competition from Mukesh Ambani-owned Reliance Jio. Airtel had realised around ₹23,000 crore by selling its stakes in its towers arm, African business, and DTH business.
Recently, promoters of Vodafone-Idea too, infused ₹17,920 crore into the company via a ₹25,000-crore rights issue to compete with the rivals.
On Friday, the shares of Airtel closed at ₹328.20, up 0.84 per cent, on the BSE.
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