INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Bharti Airtel’s board will meet on February 28 to consider the recommendations of a special panel which had been set up to
explore options for raising funds, which the mobile phone operator will use to pare debt and free up cash for 4G expansion to take on
Reliance Jio.
“…we wish to update you that the Board in its meeting held today, noted the inputs / recommendations of the ''Special
Committee of Directors for Fund Raising' and accordingly, decided to convene a meeting of the Board on February 28, 2019 to consider the
recommendations of the Committee,” India’s second largest telco said in a notice to the exchanges late Thursday.
The company’s stock
was up 1.5 per cent at Rs311.80 on the BSE Friday.
In an exchange filing on December 20, Airtel has said its board had formed and authorised
“a special committee of directors to comprehensively explore/evaluate various fundraising options to strengthen the company’s capital
structure and balance sheet”.
ET has reported that Airtel was planning a Rs 12,000-15,000 crore rights issue to create a war chest to cut
debt and meet 4G capex needs.
Net debt at December end rose to Rs 10,63,674 crore from Rs 9,17,139 crore a year earlier but was lower than
about Rs 11,32,042 crore in the fiscal second quarter.
Over the past 21-odd months, Airtel has been raising funds by progressively reducing
its stake in its listed tower unit Bharti Infratel to cut debt to gird up for competition with Jio in the fiercely competitive 4G turf
It has already raised well over Rs 12,000 crore through multiple stake dilutions.
In December, Airtel said it will sell a further 32 per
cent stake in Bharti Infratel, valued at close to Rs 15,500 crore.
Airtel’s Infratel stake sale and fundraising plans come on the heels of
its Africa arm raising $1.25 billion, or about Rs 9,200 crore, last month by concluding a placement of shares to six global investors,
including Warburg Pincus, Temasek, Singtel and SoftBank Group
It recently also raised $200 million from Qatar Investment Authority, to also pare debt
This will be followed by Airtel Africa’s initial public offer (IPO) around May-June next year, through which the telco plans to raise
additional $1.25-1.5 billion.
