Bharti Airtel to allot 3.86 million equity shares to certain FCCB holders

Bharti Airtel on Friday said it will allot 38.6 lakh equity shares to certain FCCB holders at a conversion price of Rs 518 per equity share.

This follows receipt of notice for conversion of FCCBs (Foreign Currency Convertible Bonds) of principal value of USD 27,795,000 from the FCCBs holders.

Accordingly, it said, the paid-up equity share capital of the company has increased.

The telco's committee of directors for fundraising approved the allotment of shares to these FCCB holders on Thursday, according to a regulatory filing.

"...upon receipt of notices for conversion of FCCBs of principal value of USD 27,795,000 from certain FCCBs holder(s), the Special Committee of Directors for Fund Raising has, today, that is on February 01, 2024, approved the allotment of 3,864,800 fully paid-up equity shares of face value Rs 5 each at a conversion price of Rs 518 per equity share to such holder(s) of FCCBs," the filing said.

FCCB is a debt instrument to raise funds from overseas market. Such bonds have a fixed coupon rate and principal payments and also give bondholders the option to convert their holdings into stocks.

"This is in reference to the USD 1,000 million 1.50 per cent convertible bonds due 2025 issued by the company vide offering circular dated January 14, 2020, convertible into company's fully-paid up equity shares of Rs 5 each at any time on or after February 27, 2020 and up to the close of business hours on February 07, 2025, at the option of the FCCB holders," the company said in its filing.

The outstanding principal value of FCCBs, as listed at Singapore Exchange, stands reduced to USD 527.036 million, the filing informed.

"Paid-up equity share capital of the company stands increased to Rs 28,634,347,687.50 divided into 5,628,797,622 fully paid-up equity shares of Rs 5 each and 392,287,662 partly paid-up equity shares of Rs 5 each...," it said.