Bharti Airtel gains on preferential issue to Qatar Foundation at premium
Bharti Airtel will issue 19.99 million shares to Qatar Foundation Endowment at a price of Rs 340 per share for a total consideration of Rs 6,796 crore ($1.26 billion).
Bharti Airtel is trading higher by 4% to Rs 329 in early morning deals, after its board approved allotment of around 20 million equity shares to Qatar Foundation Endowment SP at a price of Rs 340 per share for a total consideration of Rs 6,796 crore ($1.26 billion).
“The board of directors of the company on May 03, has approved issue and allotment of 19.99 million equity shares of Rs 5 each to Qatar Foundation Endowment SPC or its affiliate at a price of Rs 340 per share on a preferential basis,” Bharti Airtel, India’s largest operator of wireless telephony, said in a filing.
The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy, it added. The funds would be used to part-retire its Rs 65,000-crore consolidated debt and finance capital expenditure, the Business Standard report suggests.
The stock opened at Rs 326 and hit a high of Rs 331on BSE. A combined around 120,000 shares have changed hands on the counter so far on BSE and NSE.
“The board of directors of the company on May 03, has approved issue and allotment of 19.99 million equity shares of Rs 5 each to Qatar Foundation Endowment SPC or its affiliate at a price of Rs 340 per share on a preferential basis,” Bharti Airtel, India’s largest operator of wireless telephony, said in a filing.
The investment will further strengthen the capital structure and provide further flexibility for the company to deliver on its growth strategy, it added. The funds would be used to part-retire its Rs 65,000-crore consolidated debt and finance capital expenditure, the Business Standard report suggests.
The stock opened at Rs 326 and hit a high of Rs 331on BSE. A combined around 120,000 shares have changed hands on the counter so far on BSE and NSE.