Bharti Airtel released price details for a plan to raise up to INR210 billion ($2.9 billion) through a rights issue, with its largest shareholder Singtel planning to support the fundraising effort.
In a stock marketing filing, Airtel outlined plans to issue 392.29 billion shares at an issue price INR535 each. A special committee of directors approved the size and price of the offering yesterday (22 September).
The rights issue opens on 5 October and closes 21 October.
In a separate statement, Singtel explained it will spend INR29.4 billion to subscribe to the offering proportional to its 14 per cent direct stake, noting after the fundraising Airtel will be equipped to invest in 5G capabilities and “ride the digital growth momentum in India”.
Singtel CFO Arthur Lang said its decision underscores its confidence in Airtel’s growth prospects.
“Not only will the Indian government’s recently announced reform package result in improved regulatory conditions supporting the healthy growth of the industry, it will also significantly improve Airtel’s liquidity to invest in becoming a truly digital-first company that will serve India’s digital vision.”
Airtel’s board approved the rights issue plan in August, though it requires regulatory approval.Subscribe to our daily newsletter Back