Bharti Telecom reportedly plans to raise up to Rs 60 billion of debt through non-convertible debentures (NCDs) to buy the balance portion of the 3.33 per cent stake in Bharti Airtel from Singapore Telecommunications (Singtel). The proposed rupee-linked NCDs will likely be subscribed primarily by top foreign portfolio investors.
Singtel earlier sold 1.76 per cent of its stake in Airtel through block deals for over Rs 71 billion. Of this, around 1.62 per cent was acquired by Bharti Telecom for Rs 66 billion, while the balance 0.14 per cent was acquired by public shareholders in Airtel. Bharti Telecom is now raising fresh debt to part-finance the purchase of the remaining 1.57 per cent stake.
