Telecom major Bharti Airtel has plans to raise up to Rs 3,000 crore through non-convertible debentures. The board of directors at Airtel in its meeting held today approved the NCDs issuance of Rs 10,000 crore along with the issuance of foreign currency bonds up to a limit of $1 billion, which comes to Rs 6,500 crore.
"National Company Law Tribunal (NCLT) has sanctioned the scheme of amalgamation between Telenor (India) Communications and Bharti Airtel and their respective shareholders and creditors under Sections 230 to 232 of the Companies Act, 2013, company said in release".
"Any funds, if raised from the issuance of aforesaid debt securities, shall be used for routine treasury activities, including refinancing of existing debt and spectrum liabilities", the company added.
Analysts said re-financing this debt would give the Sunil Mittal-led company more room to compete against Jio.More news: PM Modi launches campaign to eradicate tuberculosis from India by 2025
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A part of the stake will be utilised for the completion of stake sale in Bharti Telemedia to Warburg Pincus Group.
Kolkata: Singapore Telecommunications (Singtel) has concluded its Rs 2,649 crore investment in Bharti Telecom, taking its total stake (including affiliates) in the holding company of Bharti Airtel to 48.90% from earlier 47.17%.
At the meeting, the board also approved the transfer of 19 per cent equity stake in its direct-to-home (DTH) subsidiary Bharti Telemedia, which provides DTH services under the Airtel Digital TV brand, to Nettle Infrastructure Investments, a subsidiary company.
Shares of Bharti Airtel ended with sharp gains on the bourses with the scrip settling 4.68 per cent, or Rs 18.80, higher at Rs 420.75 on the BSE.