Bharti Airtel drops after pricing issue of dollar denominated senior notes

Bharti Airtel fell 1.12% to Rs 416.55 at 14:25 IST on BSE after the company announced that it has successfully priced an issuance of $1000 million 4.375% Senior Notes due 2025.

The announcement was made during market hours today, 4 June 2015.

Meanwhile, the BSE Sensex was down 244.69 points, or 0.93%, to 26,587.28.

On BSE, so far 2.26 lakh shares were traded in the counter, compared with an average volume of 3.93 lakh shares in the past one quarter.

The stock hit a high of Rs 424.35 and a low of Rs 415.20 so far during the day. The stock hit a 52-week high of Rs 434.70 on 29 May 2015. The stock hit a 52-week low of Rs 326.75 on 14 July 2014.

The stock had outperformed the market over the past one month till 3 June 2015, gaining 10.38% compared with 0.64% decline in the Sensex. The scrip had also outperformed the market in past one quarter, jumping 20.72% as against Sensex's 9.31% fall.

The large-cap telecom company has an equity capital of Rs 1998.70 crore. Face value per share is Rs 5.

Bharti Airtel announced that the Notes are expected to carry a final rating of Investment Grade from Moody's, Standard & Poor and Fitch. With 66% bonds allocated to the US investors, this is the highest ever allocation to US investors in any Indian deal, demonstrating the strong investor base Bharti has created for itself in developed markets allowing it to efficiently raise capital from world's leading fixed income investors.

With total order book of $2 billion, the issue was subscribed 2 times with participation from 160 quality accounts. As per regional allocation, US received 66%, Europe 18% and Asia got 16%. There was 80% allocation to mutual funds and insurance companies, with balance to banks. The US dollar Notes have been priced at 210 basis points over 10 year US dollar Treasury with a fixed coupon of 4.375% per annum to yield 4.462%.

Bharti Airtel's consolidated net profit rose 30.5% to Rs 1255.30 crore on 3.5% growth in total income to Rs 23039.80 crore in Q4 March 2015 over Q4 March 2014.

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