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Airtel $3-billion QIP plan: Issue price at a discount over floor price

Bharti Airtel has to pay nearly Rs 35,586 crore in additional statutory dues

Press Trust of India  |  New Delhi 

Bharti Airtel
Airtel has announced the closure of the issue period for the qualified institutional placement (QIP)

has announced allotment of 32.35 crore equity shares to eligible institutional buyers at an issue price of Rs 445 per share as part of $2 billion (over Rs 14,000 crore) qualified institutional placement that closed on Tuesday.

The issue price was at a discount of 1.57 per cent to the stated floor price of Rs 452.09 per equity share. The company had embarked on a mega fund raising exercise, the proceeds of which will be used to pay the (AGR) liability and invest in the network.

has to pay nearly Rs 35,586 crore in additional statutory dues, after a Supreme Court ruling on AGR liabilities of telecom in October last year.

Earlier this month, shareholders of had approved proposals to raise up to $2 billion (over Rs 14,000 crore) in equity and another $1 billion (around Rs 7,000 crore) in debt.

Airtel has announced the closure of the issue period for the qualified institutional placement (QIP) and fixed the issue price at "Rs 445 per equity share which is at a discount of 1.57 per cent to the floor price of Rs 452.09 per equity share".

As many as 32.35 crore equity shares are being allotted to eligible qualified institutional buyers, the company said in a regulatory filing. The special committee of directors for fund raising exercise also cleared the terms of foreign currency convertible bonds (FCCBs) including the issue price.

"FCCBs due 2025, convertible into fully paid-up equity shares of face value of Rs 5 each of the company at a price of Rs 534 per conversion equity share to the initial purchasers subject to receipt of funds, satisfaction of other conditions precedent and settlement as per applicable laws and procedures and relevant agreements," the filing said.

First Published: Wed, January 15 2020. 10:45 IST
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