New Delhi, Mar 1 : Telecom operator Bharti Airtel plans to raise Rs 32,000 crore through a mix of rights issue and bond in a bid to take on bruising market competition led by Reliance Jio.
The company said its board of directors considered recommendations of a special committee of directors and approved the fund raising of up to Rs 32,000 crore through rights issuance of up to Rs 25,000 crore and perpetual bond with equity credit up to Rs 7,000 crore.
A perpetual bond of up to one billion dollars (about Rs 7,000 crore) denominated in foreign currency is subject to price, market conditions and other terms and conditions as acceptable, and with conditions allowing for full accounting equity credit and subject to all applicable laws, it said in a communication to stock exchanges.
The terms of the rights issue cleared by the board on Thursday include price of Rs 220 per fully paid equity share (a premium of Rs 215 per fully paid equity share over face value of Rs 5 per share); and a rights entitlement ratio of 19 shares for every 67 shares held by eligible shareholders, the statement added.
The fund raising plan outlined by Bharti Airtel comes after Vodafone and Aditya Birla Group said they will infuse over Rs 18,000 crore into Vodafone India through a rights issue.
The telecom sector has witnessed tumbling tariffs and profitability amid mounting debts and stiff competition triggered by disruptive offerings of Mukesh Ambani-owned Reliance Jio.
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