Fund-raising to boost Bharti books: Analysts

Mumbai: Bharti Airtel’s plans to raise $2 billion (₹14,200 crore) via an equity issue as part of a larger $4 billion fund-raising move will strengthen its balance sheet ahead of the January-end deadline to pay its adjusted gross revenue (AGR) dues, but lead to an equity dilution of about 6% for promoters, analysts said.

“Assuming $2 billion is treated as upfront equity, the fund-raise would, at current prices, equate to a dilution of ~6% for now,” said a report by Citi Research.

It highlighted that while promoters are not permitted to participate in a qualified institutional placement of shares, they may still maintain their shareholding level through a private placement. The telco had raised ₹25,000 crore earlier this year via a rights issue .