As per the reports, the major Bharti Airtel promoter business, Bharti Telecom (BTL) plans to use Non-Convertible Debentures (NCD)to raise up to ₹ 6,000 crores in debt to facilitate the buying of the balance 3.33% stake of Singapore Telecommunications (Singtel) stake in the Indian company.
The reports stated that leading foreign portfolio investors (FPI) might subscribe to the rupee linked NCDs in impressive numbers. Adding further, the reports mentioned of participation of certain regional institutional investors in the same.
Singtel sold its stake of 1.76% in Airtel Telecom for ₹ 7,100 crores in block agreements. BTL bought most of the stake of approximately 1.62% at ₹ 6,604 crores, and the balance of 0.14% was picked up by various public Airtel stockholders. Reports updated that BTL is planning to build new financing to support partially facilitate the buying of the final 1.57% stake from Singtel.
Others assisting BTL in building the funds, include Standard Chartered Bank, BNP Paribhas, HSBC, and Japan-based MUFG respectively.
Aiming to maximize shareholder returns and return on capital, Singtel declared last month of its intent to sell a 3.33% stake in Airtel Telecom to BTL at $1.61 billion (approximately, ₹ 12,900 crores).
