Bharti Airtel’s Parent Seeks $1 Billion From Share Placement

(Bloomberg) -- The parent of Bharti Airtel Ltd. is seeking about $1 billion by selling a stake in the Indian mobile carrier after its share price hit a record on signs the years-long price war is about to end.

Bharti Telecom Ltd. is selling 150 million Bharti Airtel shares at a floor price of 558 rupees each, according to terms of the deal obtained by Bloomberg. That implies a discount of about 6% to its close on Friday.

Bharti Airtel shares climbed to a record 598.8 rupees last week after it posted a 14% increase in user revenue in the quarter through March. Investors have been betting the worst is behind the New Delhi-based operator as it faces fewer competitors than in the recent past.

The entry of billionaire Mukesh Ambani’s Reliance Jio Infocomm Ltd. in 2016 accelerated a consolidation in the market with a billion-plus subscribers -- second only to China, forcing some to merge and a few to drop out. The shake-up has left Jio and Vodafone Idea Ltd. as Bharti Airtel’s only non-state rivals.

The deal is one of the largest follow-on offerings in India this year, data compiled by Bloomberg show. Bharti raised $3 billion in January from the sale of shares and convertible bonds to help pay additional airwave and license fees after telecom operators lost a court case.

JPMorgan India Pvt. is the sole placement agent for the block trade.

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