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Airtel to raise up to Rs 32000 crore through a mix of Rights Issue and Perpetual Bond

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Capital Market
Last Updated : Mar 07 2019 | 9:50 AM IST
Bharti Airtel gave further details of its largest capital infusion plan involving a mix of Rights Issue and Perpetual Bond Issue to raise a total of up to Rs 32000 crore to further bolster its capital structure.

The Board of Bharti Airtel (the Board) has approved Rights Issue to raise up to Rs 25000 crore through issuance of fully paid up shares at a price of Rs 220 per share and to raise an additional Rs 7000 crore via the Foreign Currency Perpetual Bond Issue.

The entire rights entitlement of Promoter and Promoter Group of approx. Rs 16785.7 crore will be subscribed by them and GIC*, with Promoter and Promoter Group subscribing to Rs 11785.7 crore and GIC* subscribing Rs 5000 crore by way of renouncement in their favour.

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 undersubscription 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 7000 crore (USD 1Bn), 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.

* GIC has confirmed to subscribe to this renounced entitlement on behalf of Government of Singapore and Monetary Authority of Singapore.

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First Published: Mar 07 2019 | 9:04 AM IST

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