Bharti Airtel to raise $2.9 billion via rights issue

Indian telecoms provider Bharti Airtel revealed on Sunday that its board of directors has approved raising up to $2.86 billion by adopting a rights issue for shareholders, allowing for the sale of its shares at a discount price.

“The Board of Directors of the company, at its meeting held today, comprehensively reviewed the industry scenario, business environment, financial/ business strategy of the company and approved the company’s plan to raise further capital,” Airtel said in a regulatory filing statement.

To take things to the next stage, the wireless carrier will hold an investor call on Monday that will be led by Bharti Airtel Chairman Sunil Bharti Mittal.

As for the rights issue pricing, Airtel set a value of $ 7.28 per fully paid-up equity share, including a premium of $ 7.21 per equity share.

Terms of payment of issue price will be 25 percent on application and balance in two more additional calls within an overall time horizon of 36 months.

Rights Entitlement Ratio is kept at 1 equity share for every 14 equity shares held by eligible shareholders as on the record date, the telco explained in its statement.

Mittal and other executives in the group will also participate in the share purchase. As the promoter holding in the company stands at about 55.8 percent, while public holds 44.09 percent.

“Further, the Board has constituted a ‘Special Committee of Directors’ to decide the other terms and conditions of the Issue including Issue period and the record date,” Airtel said in the statement.

This move is expected to enable Airtel to fiercely compete against its local rivals within the 5G field.