GIC to subscribe to Bharti Airtel rights issue of Rs 25,000 crore

Bharti Airtel's Board has additionally provided an in-principle approval to raise up to Rs 7,000 crore through foreign currency perpetual bonds

Bharti Airtel on Thursday said GIC, formerly known as Government of Singapore Investment Corporation, has committed to subscribing to the company’s rights issue of Rs 25,000 crore. This is expected to reduce its leverage and strengthen the balance sheet amid fierce competition. 

The promoter group of Bharti Airtel, including the Bharti group and Singtel, would subscribe to Rs 11,785.7 crore in the rights issue, one of the largest such exercise by an Indian company, while GIC will subscribe to Rs 5,000 crore by way of renouncement in their favour.

GIC is a sovereign wealth fund established by the Government