Fundraising plan, asset sales will cut Bharti Airtel debt by half: Analysts

While equity dilution is steep, funds will give the company flexibility to ease debt, fund capex and buy spectrum

After the Rs 25,000-crore fundraising plan by Vodafone India, Bharti Airtel, too, is shoring up its cash position to take on Reliance Jio and cut debt. India’s second largest telecom company by subscribers is raising up to Rs 32,000 crore, more than initially estimated, to bring down its debt levels and fund capital expenditure. 

There are twin implications of the move. The first is of course equity dilution given that the fundraising includes Rs 25,000 crore of rights issue and Rs 7,000 crore of perpetual bonds with equity credit. Given the rights issue price of Rs 220, the offer will