Singapore’s GIC, Airtel promoters to subscribe to half of proposed Rs 32,000 Cr rights issue

New Delhi: In a regulatory filing, Bharti Airtel has unveiled details regarding its proposed Rs 32,000 crore rights issue. Through the issuance of fully paid up shares at a rate of Rs 220 per share, the telecoms operator's board last week authorised plans for a rights issue to produce up to Rs 25,000 crore while raising an additional Rs 7,000 crore through Foreign Currency Perpetual Bond Issue.

Besides being Bharti Airtel largest capital infusion plan, it is also among the largest such exercises ever taken up by a domestic company.

"The entire rights entitlement of promoter and promoter group of approximately Rs 167,857 million (Rs 16,785.7 crore) will be subscribed by them and GIC," Airtel to exchanges.

Airtel, India's second largest telecom company, is currently appointing lenders to execute this. Bharti Airtel's promoters and GIC Pvt Ltd, the Singapore government's investment division, will subscribe to more than half of the proposed rights issue in an effort to infuse funds in the company.

"The entire rights entitlement of promoter and promoter group of approximately Rs 167,857 million (Rs 16,785.7 crore) will be subscribed by them and GIC," Airtel informed the exchanges.

The promoter and promoter group will subscribe to Rs 11,785.7 crore while GIC will subscribe to shares amounting to Rs 5,000 crore by way of renouncement in their favour, the company's statement said. On behalf of the Monetary Authority of Singapore and the Government of Singapore, GIC has confirmed to subscribe to this renounced entitlement.

Singtel to infuse Rs 3,750 crore in Airtel

By subscribing to the rights issue, Singapore Telecommunications Ltd (Singtel), another promoter of the company, said it will put in Rs 3,750 crore in Airtel. The company announced that "it will subscribe to 170 million new shares" representing the rights entitlement "for its direct stake of 15 percent".

Singtel will remain the single largest shareholder

With 35.2 percent effective interest in the telecoms company, Singtel will continue to be the single largest shareholder. "The promoter and promoter group also reserves the right to subscribe either itself or through investors for additional shares in the Issue, including in the event of under-subscription by the public, in accordance with the applicable laws," the statement added.