The promoter firm Bharti Telecom on Tuesday sold 2.75 per cent stake in Bharti Airtel to institutional investors in the secondary market, raising over Rs 8,433 crore. The funds were raised through accelerated book-build offering of equity shares of Bharti Airtel, the company said in a regulatory filing. The company said that the sale proceeds will be fully utilised to repay debt at Bharti Telecom.
"Bharti Telecom Limited, the promoter company of Bharti Airtel Limited have today sold 2.75 per cent stake in Bharti Airtel to institutional investors through an accelerated book building process in the secondary market," it said.
Bharti Telecom said that the issue was oversubscribed multiple times with a mix of all categories of investors, long only and hedge fund investors across geographies in India, Asia, Europe and the US.
The sale proceeds will be utilised to fully repay debt at Bharti Telecom Limited which was raised primarily to finance the acquisition of Bharti Airtel equity shares in the past. "With Bharti Telecom Limited becoming a zero debt company Bharti Airtel's credit profile will also be augmented as it will stand to benefit from deleveraging on a consolidated basis including any debt of the promoter holding company," it added.
Bharti Group and Singtel will continue to hold a majority stake in Bharti Airtel at 56.23 per cent after the transaction, it added.
"The strong and wide response received from a diverse mix of investors across geographies, even during challenging global macroeconomic conditions, clearly demonstrates the competitive strength and the long term prospects of Bharti Airtel. On the back of such a strong demand from international and domestic investors, the amount raised was increased to USD ~ 1.15 Billion. With the proceeds, Bharti Telecom Limited will become a zero debt company providing an even stronger financial flexibility and capacity to provide any additional shareholder support as may be desired by Bharti Airtel from time to time," Harjeet Kohli, Group Director, Bharti Enterprises, said.
JP Morgan India was the sole placement agent for the secondary placement.