Bharti Airtel Launches $2 Billion QIP
Painted advertisements for Bharti Airtel Ltd. are displayed on the sides of buildings in Murthal, Haryana, India. (Photographer: Prashanth Vishwanathan/Bloomberg)  

Bharti Airtel Launches $2 Billion QIP

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Bharti Airtel Ltd. on Wednesday said it has opened qualified institutions placement process to raise $2 billion and has launched foreign currency convertible bonds worth up to $1 billion.

For the QIP issue, the special committee of directors has fixed a floor price of Rs 452.09 per share.

"The Special Committee of Directors for Fund Raising of the company has, at its meeting held on Jan. 8, 2020 approved issue of equity shares on a QIP (basis)," the company said in a BSE filing.

It added that the floor price of Rs 452.09 per equity share in respect of the issue is based on the pricing formula as per the Securities and Exchange Board of India rules.

The filing said the committee may, at its absolute discretion, offer a discount of not more than 5 percent on the floor price.

Besides, the company has also launched FCCBs at a regulatory floor price of Rs 452.09 to raise an aggregate amount of up to $1 billion, the filing said.

Earlier this month, shareholders of Bharti Airtel had approved proposals to raise up to $2 billion in equity and another $1 billion in debt.

The proposal for issuance of securities for amount up to $2 billion, and issue of foreign currency convertible bonds and unsecured/secured redeemable non-convertible debentures along with or without warrants was passed at the company's extraordinary general meeting on Jan. 3.

Airtel is expected to use the funds to pay the adjusted gross revenue liability and invest in the network.

The company has posted a staggering Rs 23,045 crore net loss for the second quarter ended Sept. 30, due to provisioning of Rs 28,450 crore in the aftermath of the Supreme Court ruling on statutory dues.

According to government data, the liabilities in the case of Bharti Airtel add up to nearly Rs 35,586 crore, of which Rs 21,682 crore is licence fee and another Rs 13,904.01 crore is the spectrum usage charge dues (not including the dues of Telenor and Tata Teleservices).

Shares of Bharti Airtel closed at Rs 458.95 apiece, up 3.05 percent from the previous close on BSE.

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