InvestorQ : Why is Bharti Airtel again raising funds aggressively in the market?
Chandralekha Desai made post

Why is Bharti Airtel again raising funds aggressively in the market?

Answer
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Dawn Cherian answered.
4 months ago


Promoters of Bharti Airtel will sell $1 billion worth of stake in the mobile operator through a block deal on Tuesday. Bharti Telecom is the promoter holding company of Bharti Airtel. The block deal will entail 2.75% stake and is expected to be executed by J P Morgan at around Rs.558/share. After the deal, debt will be absolutely zero at promoter level. This debt was taken for buying stake in Airtel and it will give Bharti Telecom the firepower to increase stake in the company in future if required. After the deal is executed, promoter stake in the company will fall from 58.98% to 56.23%. The stock price has risen by almost 50% since the lows of February and the stock is quoting at 52-week high. That surely offers a good level for Bharti promoters to monetize their stakes.


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preetam lenka answered.
4 months ago


Over the last three years, Bharti Airtel had been aggressively raising funds through rights issue, qualified institutional placements of equity, issue of foreign currency convertible bonds (FCCBs), among others, for capital expansion.

The company has also been hit by court orders, primarily a Supreme Court judgement in October directing the company to pay 35,586 crores in dues related to adjusted gross revenues to the telecom department.

However, some green shoots are visible now, with a tariff increase in December substantially improving the financials of its consumer mobile operations in the January-March quarter.


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biswajit jena answered.
4 months ago


Over the last three years, Bharti Airtel had been aggressively raising funds through the rights issue, qualified institutional placements of equity, and issue of foreign currency convertible bonds (FCCBs), among others, for capital expansion.