The stock market regulating authority SEBI has approved the telecom operator Bharati Airtel’s bid to launch rights isue. Telecom operator Bharati Airtel has decided to raise up to Rs 25,000 crore through rights issue.
The Board of the company had approved the rights issue proposal in February. The SEBI has given green signal to the rights issue of Airtel. The board had earlier approved the rights issue to raise up to Rs 25,000 crore through issuance of fully paid-up shares at a price of Rs 220 per share, and an additional Rs 7000 crore via foreign currency perpetual bond issue.
Last month, Airtel received a commitment from its single-largest shareholder Singtel, promoters, and GIC Singapore to participate in the Rs 32,000-crore capital raising programme.
Singapore telecom major Singtel said it will infuse Rs 3750 crore in Bharti Airtel by subscribing to the proposed Rs 25,000-crore rights issue of the company, while GIC Pvt. Ltd., on behalf of Singapore government and Monetary Authority of Singapore, has made a commitment of Rs 5000 crore in the proposed programme.
The company had said the capital infusion will help it continue investments in future rollouts to build large network capacity and create content and technology partnerships to ensure strong customer experience.