Bharti Telecom Limited (BTL), the promoter company of Bharti Airtel, has raised Rs 84.33 billion ($1.15 billion) by selling a 2.75 per cent stake in Airtel.
BTL has sold Airtel’s stake to a clutch of international and domestic investors through an accelerated book building process in the secondary market. The allocation was done to more than 50 accounts, with the top 10 getting two-thirds of overall allocation.
As per Bharti Enterprises, on the back of a strong demand from international and domestic investors, the amount raised was increased to around $1.15 billion compared with $1 billion initially planned. The sale proceeds will be utilised to fully repay debt at BTL, which was raised primarily to finance the acquisition of Bharti Airtel equity shares in the past. With this, BTL will become a zero-debt company.
The investors include Blackrock, Fidelity, Segantii Capital, Norges Bank and Key Square Capital, and local fund houses including HDFC Mutual Fund and SBI Mutual Fund. As per industry sources, other overseas buyers include Jane Street and Marshall Wace, and local fund houses such as Birla Mutual Fund and Axis Mutual Fund.
JP Morgan India was the sole agent for the secondary placement.