The transaction is the largest dual tranche equity and FCCB offering ever in Asia-Pacific, the largest QIP by a private sector issuer ever in India and the largest FCCB offering from an India issuer in the last 12 years. The overall allotment is pre-dominantly to long only investors, thereby also ensuring diversification of the shareholder base of Bharti Airtel.
The Company raised USD 2 billion through the QIP route; which saw participation by highly reputed global and Indian investors. The Company accordingly will issue 323,595,505 equity shares of face value of Rs. 5 per equity share at a price of Rs. 445 which implies a discount of 1.57% on the SEBI determined floor price of Rs. 452.09 per equity share. Post the QIP issue, the holding of promoter and promoter group will be 58.98% as against 62.70%.
The FCCB offering re-opened the 11dian FCCB market after a 3-year absence of such issuances. The offering was multiple times oversubscribed with very strong demand from several marquee Asian and European funds. The deal was fully upsized to USD 1 billion and priced at the best-end of the yield for the company on the back of strong interest from existing and new investors. The FCCB was priced at a coupon of 1.5% per annum, yield-to-maturity of 2.0% per annum and a conversion premium of 20% above the final QIP price of Rs 445.
The net proceeds of the fund raised will primarily be used to augment the company's long term resources and strengthen the balance sheet, servicing and/or repayment of short term and long term debts capital expenditures, statutory dues, long term working capital requirements and generall corporate purposes as permitted under applicable laws.
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