Singtel injects $525 mn in Airtel to help firm prop up balance sheet

Singapore Telecommunications Ltd (Singtel) said it will buy roughly $525 million worth Bharti Airtel stock as part of the Indian telecoms operator’s plan to raise $4.6 billion through shares and bonds.

Airtel hopes to use the money to cut debt and shore up its balance sheet at a time when the broader Indian telecom industry is grappling with a price war triggered by the entry of Reliance Jio Infocomm Ltd.

Under the fund raising plan, announced last month, Airtel plans to sell new shares worth Rs 250 billion ($3.6 billion) for Rs 220 apiece, or a nearly 30 percent discount to its current stock price. It will raise another Rs 70 billion via foreign-currency denominated bonds.