Bharti Airtel's board nods to raise $ 3 billion
NEW DELHI: Hit by large losses and large government fees after the verdict of the Supreme Court on Adjusted Gross Income (AGR), Bharti Airtel Monday's meeting decided to raise up to $ 3 billion (up to Rs 21,500 crore) through debt and capital, seeking to strengthen its financial position.
The company, which the SC asked to present Rs.5,586 million in three months in its October 24 verdict, said it will raise $ 2 billion (just over Rs 14,000 million) through a combination of instruments financials that may include one or more placement of qualified institutions, public and/or private offers of capital shares, mandatory convertible bonds/other convertible securities/warrants/ADR/GDR or a combination.
The remaining $ 1 billion could be through the issuance of convertible bonds in foreign currency (FCCB) or other similar securities denominated in foreign currency (s) not guaranteed and/or guaranteed, quoted and/or unquoted or combined. Or, a similar amount could be collected through non-convertible exchangeable obligations along with warrants or other similar securities denominated in India rupee , the company said in a statement to the stock exchanges.
Airtel's action closed on Wednesday at Rs 460 in the Bombay Bag , up to 0.4%. The company, which reported losses of Rs 23,045 crore in the second quarter, has a profitability of Rs 1 lakh crore. He will expect to cut part of it through current financing. Airtel and other telecommunications companies such as Vodafone Idea and trust Jio They also seek to strengthen their finances by increasing tariffs. The company increased tariffs from Monday after a period of three years, and the increase ranges from 10% to 45%.