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Bharti Airtel promoter to raise $1 billion to become debt free

Bharti Telecom has roped in JP Morgan for the raising USD 1 billion by selling 150 million equity shares at a price of Rs 558 per cent per unit

twitter-logoBusinessToday.In New Delhi Last Updated: May 26, 2020 | 14:52 IST
Bharti Airtel promoter to raise $1 billion to become debt free
Sunil Bharti Mittal, the Founder and Chairman of Bharti Enterprises, along with his family own around 52 per cent stake in Bharti Telecom

Bharti Telecom, parent company of Bharti Airtel, reportedly plans to raise $1 billion (around Rs 7,600 crore) through equity sale to become debt free. The promoter firm plans to offload 2.75 per cent stake in the telecom operator at floor price of Rs 558 per share, a discount of 6 per cent at Friday's closing price of Rs 593.2 apiece, through block deal.

"Bharti Telecom has roped in JP Morgan for raising $1 billion by selling 150 million equity shares at a price of Rs 558 per cent per unit. It is a discount of six per cent on closing price of Rs 593.2 apiece as on May 22," news agency PTI quoted a source as saying.

The deal is expected to close by this evening, the source said.

Also Read: Bharti Airtel posts net loss of Rs 32,183 crore in FY20; revenue up 8%

The $1 billion fund raise will make the promoter of Bharti Airtel debt free.

Bharti Telecom owns nearly 41 per cent stake in Bharti Airtel, while foreign promoter entities hold 21.46 per cent stake in the mobile telecom operator. The rest 37 per cent holding the company is owned by public shareholders. Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, and his family own around 52 per cent stake in Bharti Telecom.

Also Read: Airtel announces Work From Home plans for businesses; check out details

As on March 31, 2020, Bharti Airtel had consolidated net debt, excluding lease obligations, of Rs 88,251.2 crore compared to Rs 10.8234.6 crore as on March 31, 2019. Consolidated net debt for the company including the impact of leases stands at Rs 1.19 lakh crore as on March 31, 2020.

By Chitranjan Kumar with PTI inputs

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