Telecom operator Bharti Airtel Thursday received commitment from its single-largest shareholder Singtel, promoters and GIC Singapore to participate in its 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.
GIC Private Limited, on behalf of Government of Singapore and Monetary Authority of Singapore, has made a commitment of Rs 5,000 crore in the proposed programme.
"The entire rights entitlement of Promoter and Promoter Group of approximately Rs 167,857 million (Rs 16,785.7 crore) will be subscribed by them and GIC, with Promoter and Promoter Group subscribing to Rs 117,857 million (Rs 11,785.7 crore) and GIC subscribing Rs 50,000 million (or Rs 5,000 crore) by way of renouncement in their favour," Bharti Airtel said in a statement.
The board of Bharti Airtel last week approved 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 an additional Rs 7,000 crore via the foreign currency perpetual bond issue.
Bharti Airtel said the capital infusion will help it continue investments in future rollouts to build large network capacity and create content and technology partnerships to ensure the best customer experience.
SingTel announced that "it will subscribe to 170 million new shares in the Rs 250 billion rights issue by regional associate Bharti Airtel (Airtel) at an issue price of Rs 220 per share, for a total consideration of Rs 37.5 billion (approximately USD 525 million), representing the rights entitlement for its direct stake of 15 per cent."
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