Airtel mops up $2 billion at issue price of Rs 445 per share

Airtel mops up $2 billion at issue price of Rs 445 per share.

Bharti Airtel announced on Wednesday the sale of 323.5 million equity shares to eligible institutional buyers at an issue price of Rs 445 per share as part of a qualified institutional placement of US $2 billion which closed on Tuesday. The issue price was 1.57% off the announced floor price of Rs 452.09 per share of equity. Airtel has announced the closure of this issue cycle for eligible institutional placement and has set the issue price at Rs 445 per share, which is at a discount of 157 per cent on the Rs 45209 floor price per share. Business is collecting funds to pay its adjusted gross revenue liability.The net proceeds from the raised funds will mainly be used to increase the company's long term resources and improve the balance sheet, servicing and redemption of short and long term loans, capital expenditures statutory dues, long term working capital provisions, and general corporate purposes as allowed under applicable laws, the firm said.

          The offering experienced a strong responses from foreign and domestic investors amid a volatile market climate and demanding global macroeconomic conditions. This underlines the growth oriented financial performance of Airtel, and the future growth prospects of our business and industry, "said Harjeet Kohli, general manager, Bharti Enterprises. Bharti Airtel is required to pay Rs 35586 crore in additional statutory dues as a result of an October Supreme Court ruling on telecom companies AGR liabilities. The company's shareholders accepted plans earlier this month to raise $2 billion in equity, and another $1 billion in debt. Airtel announced the closure of this issue cycle for the QIP and set the issue price at "Rs 445 per share, which is at a discount of 1.57 percent to the floor price of Rs 452.09 per share. Eligible institutional investors are being allocated equity shares, the company said in a letter to shareholders.

          The special fundraising committee of directors also approved the terms of convertible foreign currency bonds including the issuance price. FCCBs due in 2025, convertible into fully paid-up equity shares of face value of Rs 5 per company at a price of Rs 534 per conversion to the initial buyers subject to receipt of funds, fulfillment of other preceding conditions and settlement as per applicable laws and procedures and related agreements, said the filing. Axis finance, Citigroup global markets India and JP Morgan India acted as global coordinators and book-running lead managers, and Goldman Sachs (India) Securities , BNP Paribas, DSP Merrill Lynch, HDFC Bank and HSBC Securities and capital market (India) were the lead managers for the QIP problem and Goldman Sachs (Asia) L.L.C, Barclays Bank PLC.