Airtel looks to raise $862 mn by diluting 15% in Africa arm IPO

Kolkata: Bharti Airtel plans to raise as much as $862.5 million (Rs 6,038 crore) from the dilution of a roughly 15% equity stake and greenshoe option in an initial public offering of its African subsidiary on the London Stock Exchange and use the funds to pare debt.

The company plans to offer new shares, including the greenshoe option, that will be equivalent to about 15% of the company’s issued capital, a person with knowledge of the matter told ET.

The company expects to raise about $750 million from the offer, excluding the 15% greenshoe option, Airtel Africa said in a filing with the LSE on Tuesday. The net proceeds from the issue will be used to reduce net debt, it said.