Published: Thu, November 16, 2017
Science | By Hubert Green

Bharti Airtel raises Rs 3325 crore by selling stake in tower unit

Bharti Airtel raises Rs 3325 crore by selling stake in tower unit

Share sale was carried for a total consideration of over Rs 3,325 crore ($ 510 million) and was executed at price band of Rs 400.6 per share - which is at a discount of 3.6% of the previous day closing price.

Bharti Airtel shares closed flat, at ₹498.05, on the BSE, which ended down 0.28 per cent on Tuesday.

The stock hit an intraday high of Rs. 506 and intraday low of 496. At the closing stock price on the BSE, Infratel had a market cap of more than Rs 76,000 crore.

Bharti Airtel's net profit for the July-September quarter plunged by a whopping 77 per cent from a year earlier, amid a fierce price war unleashed by Mukesh Ambani-led Reliance Jio.

This transaction would fetch India's largest telecom operator by customers about Rs 3,325 crore ($510 million) excluding transaction costs and statutory levies, Bharti Airtel said in a stock exchange filing.

In a statement to exchanges, Bharti Airtel said, "The allocation was done to global investors, fund managers and long only funds, including many repeat investors".

Shares of Bharti Infratel fell 2.68% to Rs 400.10.

Bharti Airtel's net debt was Rs 91,480 crore at the end of September 2017.

"On November 14, Bharti Airtel Ltd (Bharti, Baa3 negative) announced that it completed the sale of around 83 million shares.The transaction is credit positive as it is in line with management's commitment to strengthen its balance sheet and reduce debt". Following the transaction, Bharti Airtel and its wholly-owned subsidiaries hold 53.51% in Bharti Infratel. The deal, buoyant on healthy investor appetite, was upsized by over 25 per cent, it added.

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