Airtel parent to raise $1 billion via share sale today

Kolkata: Bharti Telecom, the holding company of Bharti Airtel, will sell up to 2.75% stake in the telco to raise around $1 billion (nearly Rs 7,600 crore) through a block deal on Tuesday to become a zero-debt firm and be ready to infuse more funds in the listed entity if required.
The buyers are likely to include global investors such as Fidelity, Segantii Capital and Norges Bank as well as local funds such as HDFC Mutual Fund, SBI Mutual Fund and Birla Mutual Fund, said a person familiar with the matter. The stake sale is likely to happen at Rs 558 per share, a 6% discount over the Friday closing price of Rs 593.20. Markets were closed on Monday for Eid.
“Bharti Telecom intends to clean up debt at the promoter level, which will clear the path for it to inject more capital towards shareholder support at Airtel in the near future,” the person said, indicating the possibility of further fund-raising at Bharti Airtel. The telco had raised Rs 25,000 crore through a rights issue in March 2019.