Airtel Gives More Clarity On Its Rs 32,000 Cr Fund Infusion, Ropes In GIC Singapore

Airtel on Thursday gave more details on its Rs 32,000 crore capital infusion plan that it had announced a week back where it had said the company will raise Rs 25,000 crore via Rights Issue and the rest Rs 7000 crore he Foreign Currency Perpetual Bond Issue.

Today it said the entire rights entitlement of Promoter and Promoter Group of approx. Rs 16,7,86 crore will be subscribed by them and GIC, a Government of Singapore owned investment fund, with Promoter and Promoter Group subscribing to Rs 11,7,86 crore and GIC subscribing Rs 5000 crore by way of renouncement in their favour.

“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,” said Gopal Vittal, MD and CEO (India & South Asia) – Bharti Airtel.

The raised fund, it is believed, will be used to pay off some debt and keep the firm’s war-chest ready for the upcoming 5G spectrum auction and its ongoing network transformation.

The company said 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, Airtel said in a statement.

“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. We are confident that we will continue to be the brand of choice, especially for the discerning and quality conscious customer.” Added Gopal.

Also Read

Leave a Reply

 
%d bloggers like this: