Bharti Infra issues Rs 2,000 cr buy-back offer to shareholders

Mobile tower firm Bharti Infratel has issued its shareholders a buy-back offer worth Rs 2,000 crore which opens on July 12.
"This Letter of Offer is sent to the Eligible Shareholders as on the Record Date. A copy of the Public Announcement, Draft Letter of Offer and Letter of Offer, including the Tender Form(s), shall be available on the website of the Securities and Exchange Board of India," Bharti Infratel said in the Letter of Offer submitted to the BSE today.
With the buy-back price of Rs 425 and buy-back size of Rs 19,99,99,99,775, the total number of shares to be bought back in the buy-back shall be 4,70,58,823 equity shares, representing 2.48 per cent of the total issued and paid-up equity capital of the company. The buy-back issue will close on July 25.

Bharti Infratel has set June 16, 2016 as record date for determining the buy-back entitlement and the names of eligible shareholders.
"The Buy-back size represents up to 19.3 per cent of the aggregate paid-up equity capital and free reserves of the Company as per the standalone financial statements of the Company for the financial year ended March 31, 2016," the company said.
The buy-back size is also within the statutory limits of 25 per cent of the fully paid-up equity capital and free reserves as per the last standalone audited financial statements of the Bharti Infratel, it added.

The promoter of the company, Bharti Airtel Limited, may participate in the buy-back offer.

The aggregate paid-up equity capital and free reserves of the Bharti Infratel as on March 31, 2016 was Rs 10,348 crores.
Under the provisions of the Act, the funds deployed for buy-back shall not exceed 25 per cent of the paid-up capital and free reserves of the Company under shareholder approval route.
"Accordingly, the maximum amount that can be utilised in the present buy-back is Rs 2,587 crore," the company said.
Shares of Bharti Infratel closed at Rs 355.30 a unit, up by 1.57 per cent compared to previous close, at BSE today.