Airtel richer by Rs 2,100 Cr from Infratel stake sale

Bharti Airtel today announced the successful completion of the Offer For Sale (OFS) of 85 million shares of its subsidiary Bharti Infratel for a total consideration of over Rs 2,100 crore.

The offer, which opened and closed today on the BSE and the NSE, was for 45 million shares with a greenshoe option of additional 40 million shares, taking the total issue size to 85 million.

The strong demand for the issue allowed the final price to be at a premium to the floor price, resulting in a 3.5 percent discount to the last 30 days VWAP (volume weighted average price).

Akhil Gupta, vice chairman, Bharti Enterprises said, “We are pleased with the strong investor response to the offer. This underlines the robust business model, strong fundamentals and the potential going forward for Bharti Infratel as the Indian telecom industry enters a phase of data services led growth. The proceeds from the offer will allow Bharti Airtel to further deleverage through debt reduction.”

With the offer, Bharti Airtel’s equity holding in Bharti Infratel has come down to 74.86 percent, well ahead of the December 2015 timeline to comply with SEBI’s minimum public shareholding norm of 25 percent.

Harjeet Kohli, group treasurer, Bharti Airtel said, “The OFS got a global response, with investors including new ones, participating from US, Asia, Europe and India, leading to it being the largest OFS from the Indian private sector. While broadening the investor base, this offer would also provide higher trading volumes in Bharti Infratel stock.”

DSP Merrill Lynch Limited, JP Morgan India and UBS Securities were the brokers for the offer.

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