Airtel Rs 25k-cr rights issue over-susbscribed

Airtel on Friday said its Rs 25,000 crore rights issue has been over-subscribed based on the preliminary information on the subscription by Friday eveneing, the last date of closing the issue.

"The Company would like to bring to your notice that, based on preliminary information received, the rights issue has been over-subscribed. The applications received in the Rights Issue are subject to verification and clearing of payments, as applicable, and finalization of the basis of allotment," the company said in a regulatory filing.

Market sources said $3.5 billion and the additional $1 billion perpetual further strengthens the capital structure formidably. Put together, this will be one of the largest ever equity fund raised. The participants have given a robust thumbs up to the company and its outlook, they said.

A fund manager said attractive pricing decision by Bharti Airtel upfront, a rare decision in recent times, has proved to be very bold and investor friendly and reflects Bharti's long-term strategic view on the business and opportunities across space.

Airtel's Rs 25,000-crore rights issue opened on May 3 and closed on Friday. Airtel had announced rights issue to raise up to Rs 25,000 crore through issuance of fully paid-up shares at a price of Rs 220 per share, and additional Rs 7,000 crore through a foreign currency perpetual bond issue.

The company said the capital infusion will help it continue investments in future roll-outs to build large network capacity and create content and technology partnerships to ensure the strong customer experience.

Earlier Airtel received commitment from its single-largest shareholder SingTel promoters, and GIC Singapore to participate in the Rs 32,000-crore capital raising programme.

Singapore telecom major SingTel said it will infuse Rs 3,750 crore in Bharti Airtel by subscribing to the proposed Rs 25,000-crore rights issue of the company, while GIC Pvt Ltd, on behalf of Singapore government and the Monetary Authority of Singapore, has made a commitment of Rs 5,000 crore in the proposed programme.

--IANS

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