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Airtel Rs 25k-cr rights issue over-susbscribed

By IANS | Published: May 17, 2019 10:16 PM

Airtel on Friday said its Rs 25,000 crore rights issue has been over-subscribed based on the preliminary information on the subscription by Friday eveneing, the last date of closing the issue.

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"The Company would like to bring to your notice that, based on preliminary information received, the rights issue has been over-subscribed. The applications received in the Rights Issue are subject to verification and clearing of payments, as applicable, and finalization of the basis of allotment," the company said in a regulatory filing.

Market sources said $3.5 billion and the additional $1 billion perpetual further strengthens the capital structure formidably. Put together, this will be one of the largest ever equity fund raised. The participants have given a robust thumbs up to the company and its outlook, they said.

A fund manager said attractive pricing decision by Bharti Airtel upfront, a rare decision in recent times, has proved to be very bold and investor friendly and reflects Bharti's long-term strategic view on the business and opportunities across space.

Airtel's Rs 25,000-crore rights issue opened on May 3 and closed on Friday. Airtel had announced rights issue to raise up to Rs 25,000 crore through issuance of fully paid-up shares at a price of Rs 220 per share, and additional Rs 7,000 crore through a foreign currency perpetual bond issue.

The company said the capital infusion will help it continue investments in future roll-outs to build large network capacity and create content and technology partnerships to ensure the strong customer experience.

Earlier Airtel received commitment from its single-largest shareholder SingTel promoters, and GIC Singapore to participate in the Rs 32,000-crore capital raising programme.

Singapore telecom major SingTel said it will infuse Rs 3,750 crore in Bharti Airtel by subscribing to the proposed Rs 25,000-crore rights issue of the company, while GIC Pvt Ltd, on behalf of Singapore government and the Monetary Authority of Singapore, has made a commitment of Rs 5,000 crore in the proposed programme.

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