Bharti Airtel aims to lift $400 Million (almost Rs 2,617.2 Crore) by trading 3.5% in Bharti Infratel, the listed tower unit, via block agreements in the open market. The data was given by sources well known with the decision this week to the media in an interview. The move seeks to free up cash for growth projects, trim debt, and assist offset the stress on income.
As per a term sheet viewed by the media, the top telecom company of India is aiming to trade 3.5%, or 65.43 Million shares, in Bharti Infratel. This will be done in the cost band between Rs 400 to Rs 415.5 per share, or utmost 3.7% discount to the last closing cost of the stock on the NSE (National Stock Exchange).
This week, Bharti Infratel dropped to Rs 415.50 by 2.6% on the NSE and to Rs 411.10 by 3.4% on the BSE. At the ending stock cost on the BSE, Infratel had a share in the market of over Rs 76,000 Crore. Stakes in Bharti Airtel concluded at Rs 498.05 by 0.8% lower on the BSE.
Airtel will trade the share through Nettle Infrastructure Investments Ltd. This unit as of September end held almost 7.7% of shares of Bharti Infratel while Bharti Airtel possessed 50.3% of the tower provider. CPP Investment Board and KKR grabbed extra 0.3%, while the rest of Infratel share is possessed by public shareholders.
Bharti Airtel refused to answer. Goldman Sachs, UBS, and J.P. Morgan were managing the share sale for leading telecom company of the country.
Bharti has been monetizing its share in Infratel slowly but surely to trim debt, and enhance flows of cash to fund the much-required investments. The investment that it must make to grow the 4G-guided data network and fend off rivalry from Reliance Jio and a sturdier Idea Cellular-Vodafone India merged entity! The debt of the telecom company at September end stood at Rs 91,480 Crore.
Airtel has lately expanded up its capital expenditure strategies from Rs 20,000 Crore that were planned initially to Rs 25,000 Crore for this financial year, as per the sources.