Telecom major Bharti Airtel raising its fund of $2billion kept the outlook for 2020. It is about to raise its fund through QIP, ie. Qualified Institutional Placement- issuing equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer. 2019 raised a double amount of 2018, around Rs 35000 crore by a dozen companies to fund their business requirements.

“This year will definitely be a good year for capital raising. Already we have seen an uptick in past few months. We believe QIP could be the preferred mode of fundraising for corporate houses, given its quick turnaround time. In large cap and select mid-caps, there will be good demand….,” said Sudhir Bassi, executive director at Khaitan & Co.

V Jayasankar, head of equity capital markets, Kotak Investment Banking, forecasted that raising the funds through QIP and block deals will raise almost around 30 percent in 2020.

Bharti Airtel on Wednesday announced allotment of 323.5 million equity shares to eligible institutional buyers at an issue price of Rs 445 per share as part of US$2 billion QIP that closed on Tuesday. The firm is raising funds to make payments towards its adjusted gross revenue (AGR) liability.

The funds raised should be used primarily to augment the company’s long term resources and strengthen balance sheet, servicing long term debts, capital expenditures, statutory dues, long term working capital requirements and general corporate purposes as permitted under applicable laws.

Airtel announced the closure of this issue period for the QIP and fixed issue price at Rs 445 per equity share, which is at a discount of 1.5 per cent the floor price of Rs 452.09 per equit share.