Four fund houses bid for Bharti Airtel rights issue
21/05/2019 09:01
The fund houses SBI MF, ICICI Prudential MF, Franklin Templeton MF and HDFC MF, have tendered for Bharti Airtel’s about Rs 25,000 crore rights issue, that the telecom operator will use to support its balance sheet to fight with competitors Reliance Jio and Vodafone Idea.

As per the company, the rights issue has been over-subscribed.

The company doesn’t provide the complete details other than the rights issue was priced at Rs 220 apiece. It has issued 1.14 billion shares, increasing its equity base to 5.13 billion shares. The rights were entitled in the ratio was 19 shares for every 67 held.

The company has raised by the sale of perpetual bonds of Rs. 7000 crore to expand its 4G network.

The bonds were issued by the company to free up cash to invest in 4G networks and to support its balance sheet amid continuing competition since Reliance Jio’s entry in September 2016.

Rajiv Sharma, Co-head of research at SBICap Securities mentioned in a statement that the strong response to the rights issue will also give company the financial capability to participate meaningfully in the upcoming 5G auction as and when it happens.