Telecom major Bharti Airtel’s Rs 25,000 crore rights issue will open on May 3, the company said in an exchange filing. It will close on May 17 as the board of directors,in a meeting held today, approved the rights issue. “Last date for receiving request for split application form (is) May 10, 2019,” the regulatory filing said.
The ‘record date’ to determine the eligibility of the shareholders has already been fixed by Sunil Bharti Mittal-led telco for April 24. The company plans to raise as much as Rs 25,000 crore through fully paid-up shares at Rs 220 a share. It also announced to raise an additional Rs 7,000 crore through issue of foreign currency perpetual bonds.
The firm plans to infuse the funds to invest in the future roll-outs to establish large network capacity. The company also plans to create content and technology partnerships for robust customer experience.
The telecom major received commitment from Singtel, the single-largest shareholder in the company, promoters, and GIC Singapore to participate in the Rs 32,000 crore worth capital raising programme.
Rs 3,750 crore will be infused in the company by Singapore-based telecom major SingTel by subscribing to the proposed rights issue. A commitment of Rs 5,000 crore has been made by GIC Pvt Ltd on behalf of the Singapore government and the Monetary Authority of Singapore.
Meanwhile, in FY18, the consolidated debt of the company was at Rs 1.11 lakh crore as against Rs 1.07 lakh crore in the preceding year The standalone debt of the company stood at Rs 65,416 crore in the quarter ending March 2018 as against Rs 60,095 in the year ago period.
The stock of Bharti Airtel closed at Rs 344.90, down 3.85 points, or 1.10 per cent on BSE today.