Bharti Airtel plans to raise up to Rs 21,000 crore by selling shares to existing investors, as India’s No. 2 telecom operator seeks to bolster cash reserves to pay statutory dues, expand and deepen its network and prepare for the auction of 5G airwaves and roll out of the technology.
Under the rights offer, the board approved the issuance of equity shares of face value of Rs 5 each on rights basis to eligible shareholders as on the record date (to be notified later), of an issue size of up to Rs 21,000 crore,” the company said in its release.
The board approved the issue price at Rs 535 per fully paid-up share, including a premium of Rs 530. The board “comprehensively reviewed the industry scenario, business environment, financial/ business strategy of the company and approved the company’s plan to raise further capital,” Airtel said.
The promoter and the promoter group of the company will collectively subscribe to the full extent of their aggregate rights entitlement, or in proportion to their holding, it said. They will also subscribe to any unsubscribed shares in the issue. The promoter group – the Mittal family and Singapore’s SingTel – own nearly 56% of the telco.
The Mittal family directly and indirectly owns 24.13%, while SingTel holds 31.72%. The rest is held by the public. Subscribers to the issue need to pay 25% on application and the balance in two more additional calls as may be decided by the board as per the company’s requirements, but within 36 months, it said.
Airtel’s board has constituted a special committee including the chairman Sunil Bharti Mittal along with senior members of the leadership team-Gopal Vittal, Managing Director & CEO (India and South Asia), Harjeet Kohli, Group Director-Strategy and Business Development, and Badal Bagri, Chief Financial Officer (India and South Asia), will take the call.