Airtel gets shareholders’ approval to raise upto Rs 10,000 cr through sale of corporate bonds
Corporate bonds or non-convertible debentures (NCDs) are regular debentures that cannot be converted into equity shares of the liable company.
Bharti Airtel said it has received shareholders’ approval to raise upto Rs 10,000 crore through sale of corporate bonds. The telecom operator confirmed this in a regulatory filing on BSE on Friday that the firm had received full support for this call.
Corporate bonds or non-convertible debentures (NCDs) are regular debentures that cannot be converted into equity shares of the liable company. As they are debentures without the convertibility feature attached to them they usually carry higher interest rates than their convertible counterparts.
On 24th of January, Bharti Airtel had sought shareholder approval to raise upto Rs 10,000 crore . The telecom operator that was the largest in India , till the proposed merger of Idea and Vodafone, has made cumulative investment of Rs 2,89,153.5 crore in its business which includes Rs 2,27,071.8 crore in India till December 31, 2016.
The last few months saw Indian telcos raising money for more expansion, deeper penetration and fight out the intense price wars. Idea Cellular has raised Rs 7000 crore in bonds in last 3 months while Vodafone Group infused Rs 48,000 crore in India subsidiary in September 2016.
In January, Reliance Industries pumped in Rs 30,000 crore to fuel its digital expansion and enhance network coverage and capacity. This is in addition to the Rs 1, 71,000 crore the group has already invested in the telecom arm in the last so far.
On Thursday , the Sunil Mittal company announced its plan to acquire 4G business of Tikona Networks, for about Rs 1,600 crore. Shares of Bharti Airtel , traded at Rs 340.40 a piece , up by 0.59% on Friday on the BSE.
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