Bharti Airtel has raised $3 billion through a combination of private placement of shares and an overseas sale of convertible bonds. Of this, the operator has raised $2 billion through a qualified institutional placement (QIP) and $1 billion via foreign currency convertible bonds (FCCBs).
Following the closure of the QIP issue, the combined holding of the promoter and promoter group, including Singtel and the Bharti Group, in Airtel would reduce from 62.70 per cent to 58.98 per cent.
The QIP was priced at Rs 445 per share. Airtel has allotted 323.5 million equity shares to eligible institutional buyers as part of $2 billion QIP. The issue price was set at a discount of 1.57 per cent to the stated floor price of Rs 452.09 per equity share.
Meanwhile, the FCCBs, with a face value of Rs 5 offer a coupon rate of 1.5 per cent per annum. The bonds can be converted into equity at Rs 534 a share in 2025.
The proceeds from this fund raising exercise will be used to pay the adjusted gross revenue (AGR) liability and invest in the network.