Bharti Airtel board today approved the company's plans to raise up to Rs 16,500 crore through privately placed non-convertible debentures (NCDs) and a foreign currency bonds float.
The board approved the issue of foreign currency bonds of up to $1 billion (Rs 6,482 crore) and sought fresh shareholder approval for issuance of non-convertible debentures of up to Rs 10,000 crore on a private-placement basis, the company said in a release to the BSE. "Any funds raised under such approvals, if granted, are to be used for routine treasury activities including refinancing of debt and spectrum liabilities", a spokesperson for Bharti Airtel said in a statement on March 9. The approval is reportedly the biggest fund-raising plan approved by the Bharti Airtel board in a single meeting.More news: US Deaths Tied to 'Ubiquitous but Insidious' Lead: 410K a Year
Kolkata: Singapore Telecommunications (Singtel) has concluded its Rs 2,649 crore investment in Bharti Telecom, taking its total stake (including affiliates) in the holding company of Bharti Airtel to 48.90% from earlier 47.17%.
Airtel past year also said it may sell a controlling stake in tower arm Bharti Infratel. Through various transactions of stake sale in the subsidiary, it had raised Rs 12,089 crore. Shares of Bharti Airtel were trading 4.12 per cent up at Rs 418.50 on BSE.More news: Foreign Law Firms Not Allowed To Practice In India
Bharti Airtel's net profit plunged 39% to Rs306 crore in the three months ended 31 December, as India's telecom regulator more than halved interconnection usage charges, levied by mobile networks handling incoming calls from rival networks, and the pricing war triggered by Jio's entry continued unabated.
Bharti Airtel, the largest telecom player, has also been impacted by the onslaught of competition where the industry saw dirt cheap tariffs with voice calls free for lifetime. However, analysts said this will bring in only a short-term relief to the industry reeling under financial stress.More news: #WandsReady - Fantastic Beasts: The Crimes of Grindelwald Trailer Tease