Bharti Airtel Plans to Raise $2.86 Billion From Rights Issue

By P.R. Venkat

Bharti Airtel Ltd. is planning to raise 210 billion rupees ($2.86 billion) from a rights issue, a move which some analysts say is positive for the company's growth prospects.

The Indian telecommunications giant will issue one new share for every 14 shares held, it said late Sunday.

Each share will be issued for INR535, which is a 10% discount to the last traded price.

Major shareholders plan to take up their rights fully and also absorb any unsubscribed shares, Airtel said.

The rights issues will result in 393 million shares being issued, resulting in a 7.0% increase in shares outstanding, Jefferies said.

The participation of major shareholders allays concerns about the capital raising, it said.

Write to P.R. Venkat at [e-mail]

(END) Dow Jones Newswires

08-29-21 1854ET