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    Promoters And Govt Of Singapore To Subscribe Over Half Of Bharati Airtel's Right Issue

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    In Bharati Airtel's proposed Rs 32,000 crore right issue to infuse funds into the company, its promoters and Government of Singapore's investment arm GIC Private Limited will be subscribing for over half of the share.

    In a statement on Thursday, Bharati Airtel said, "The entire rights entitlement of promoter and promoter group of approximately Rs 167,857 million (Rs 16,785.7 crore) will be subscribed by them and GIC."

    Promoters, Govt Of Singapore To Subscribe Over Half Of Airtel's Right Issue
     

    It further said that the promoter and promoter group will subscribe to Rs 117,857 million (Rs 11,785.7 crore) and GIC will subscribe to Rs 50,000 million (or Rs 5,000 crore) by way of renouncement in their favour.

    One of its promoters Singapore Telecommunications Ltd (Singtel) announced that it "will subscribe to 170 million new shares in the Rs 250 billion rights issue by regional associate Bharti Airtel (Airtel) at an issue price of Rs 220 per share, for a total consideration of Rs 37.5 billion (approximately USD 525 million), representing the rights entitlement for its direct stake of 15 percent."

    With this subscription, Singtel's interest in the company will be 35.2 percent and it will continue to be Airtel's single largest shareholder.

    The company's board had approved the rights issue to raise up to Rs 25,000 crore through fully paid shares at Rs 220 per share and an additional Rs 7,000 crore using foreign curency perpetual bond issue.

    GIC has confirmed to subscribe to this renounced entitlement on behalf of Government of Singapore and Monetary Authority of Singapore.

    "The promoter and promoter group also reserves the right to subscribe either itself or through investors for additional shares in the Issue, including in the event of under-subscription by public, in accordance with the applicable laws," the statement said.

    Read more about: airtel
    Story first published: Thursday, March 7, 2019, 12:12 [IST]
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