Bharti Airtel said it plans to raise up to Rs. 21,000 crores through a sale of shares to existing shareholders as it builds a war chest to prepare for the launch of 5G services.
Bharti said the shares would be priced at Rs. 535 each, which represents a discount of around 10% against the closing at Rs. 595.15.
Bharti’s founding chairman, Sunil Mittal, and other members of the founding group will also participate in the share purchase, the company said in a statement.
The company said shareholders would have the right to buy one share for every 14 shares they hold in the telecommunications company.
India, one of the world’s biggest telecommunications markets, was toppled by billionaire tycoon Mukesh Ambani, controlled by Jio Infocomm, which launched with free voice and reduced-price data in late 2016.
Ambani drove several rivals out of the market, while others such as the local unit of Vodafone UK and India’s Idea merged to resist Jio’s onslaught.
Ambani also gained support from Facebook, Qualcomm and Intel for its Jio Platforms digital unit, the parent of its telecommunications company.
Jio has developed its own 5G solution and Ambani said the operator will be the first to launch 5G services in India.
© Thomson Reuters 2021