Indian operator Bharti Airtel announced plans for a discounted rights issue to raise up to INR 210 billion (EUR 2.4 billion) to support its business. The controlling shareholders group agreed to support its share of the issue and buy up any shares not taken by other shareholders.
Shareholders will have the right to buy one share for every 14 already held. The price is discounted to INR 535 per share, compared to a previous close of INR 595 the day before the rights issue was announced. Airtel wants a 25 percent initial payment, while the remainder may be spread out over 36 months based on business needs.
A special committee of directors has been set up to decide further details of the issue, which will be announced later.
Airtel had announced a week prior that it was calling a board meeting to consider options for raising capital, and its rival Vodafone Idea is also looking at raising fresh money. The news follows Indian operators calling on the government for regulatory or tax relief in order to help the sector weather the difficult market conditions.
