Bharti Telecom, the holding company of Bharti Airtel is planning to sell a 2.75% stake in the latter to raise about US $ 1 billion through a secondary market block deal on Tuesday, said sources.
Currently Bharti Telecom holds a 38.79% stake in the company which will be reduced to 36.04% after the deal. Other promoters in Bharti Airtel are Indian Continent Investment Ltd, Viridian Ltd, and Pastel Ltd. The total promoter shareholding as per exchange data currently stands at 58.98 percent.
JP Morgan is the promoter’s sole placement agent or banker in the secondary market sale, as per sources.
The deal’s floor price has been fixed at ₹558 which is at 6% discount to last closing price of the share at Rs 592.95 on the National Stock Exchange as of Friday. This will be a 100 percent secondary market placement through an accelerated book-build offering of equity shares, said reports.
On Friday, there will be an exchange of around 150 million equity shares of telecom company comprising up to 2.75% of total shares outstanding as of March 31, 2020. Recently, Bharti Airtel ranked among the top five valued companies in India.
Over the last three years, Bharti Airtel had been aggressively raising funds through rights issue, qualified institutional placements of equity, issue of foreign currency bonds, among others, for capital expansion amid its brutal tariff war.
