Published: Wed, March 14, 2018
IT&Software | By Alfonso Woods

Bharti Airtel board approves Rs 10000-cr NCD issue

Bharti Airtel board approves Rs 10000-cr NCD issue

Last month, Singtel had announced plans to raise its stake in Bharti Airtel by investing Rs 2,649 crore in the telco's holding company, Bharti Telecom, through a preferential share issue, proceeds of which would be used to cut debt.

Also, the company's board has approved issuance of foreign currency bonds up to a limit of $1 billion or equivalent in one or more tranches, Airtel said in a stock filing.

The company will seek shareholders' approval for the proposed fund raising. Shares of Airtel were trading at ₹419.40 per scrip on the BSE at 3.12pm, up 4.34 per cent from the previous close. The fundraising is to conduct treasury operations including refinancing of debt and spectrum liabilities.

For the quarter ended 31-12-2017, the company has reported a Consolidated sales of Rs 20318.60 Crore, down -6.70 % from last quarter Sales of Rs 21776.90 Crore and down -12.93 % from a year ago same quarter Sales of Rs 23335.70 Crore Company has reported net profit after tax of Rs 335.10 Crore in latest quarter. In December 2017, Bharti Airtel had agreed to sell 20% equity stake in Bharti Telemedia to Warburg Pincus for approximately $350 million.

"A part of the aforesaid stake shall be utilized for completion of stake sale of Telemedia to Warburg Pincus Group, as earlier announced by the Company vide its press release dated December 12, 2017", he added.

Bharti Airtel, the largest telecom player, has also been impacted by the onslaught of competition where the industry saw dirt cheap tariffs with voice calls free for lifetime. However, analysts said this will bring in only a short-term relief to the industry reeling under financial stress.

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