Bharti Airtel gains on fund-raising via QIP

Bharti Airtel advanced 0.27% to Rs 469 after the company said it has raised $2 billion through the QIP route, which saw participation by highly reputed global and Indian investors.

The company accordingly will issue 323,595,505 equity shares of face value of Rs 5 per equity share at a price of Rs 445 which implies a discount of 1.57% on the Sebi determined floor price of Rs 452.09 per equity share. Post the QIP issue, the holding of promoter and promoter group will be 58.98% as against 62.70%.

The transaction was anchored by several existing and new shareholders. Several of the large global long only funds, sovereign wealth funds, domestic mutual funds, multi-strategy funds and insurance companies participated in the offering in sizable quantities. Long only investors comprised 80% of the demand for the QIP.

The net proceeds of the fund raised from QIP issue will primarily be used to augment the company's long term resources and strengthen the balance sheet, servicing and for repayment of short term and long term debts, capital expenditures, statutory dues, long term working capital requirements and general corporate purposes.

Bharti Airtel is a global telecommunications company with operations in 17 countries across Asia and Africa.

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