Singapore based telecom operator Singtel (Singapore Telecommunications Ltd) will invest Rs 2,649 crores in Bharati Airtel to increase its stake to 48.9% from the existing 47.17 % in the company.
Singtel will raise its stake through subscription to preference shares. It will be allotted 85,450,000 new equity shares in Bharti Telecom at an issue price of Rs 310 per equity share.
Billionaire Sunil Bharti Mittal of Bharati Enterprise will still hold over 50% of stake in Bharati Airtel.
In its statement, the company said that it will use the amount towards debt reduction. The company's consolidated net debt stood at Rs 91,714 crore on December 31, 2017.
The preferential allotment of shares which is expected to be closed by March 2018 would allow SingTel to raise its 'economic interest' in Bharti Airtel by 0.9% to 39.5%.