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Airtel raises funds to meet AGR dues

New Delhi

To meet the AGR dues of Rs 35,500 crore by January 23, Bharti Airtel on Friday came closer to arrange the funds as it announced allotment of Rs 32.35 crore equity shares to eligible buyers at an issue price of Rs 445 apiece as part of $2 billion qualified institutional placement.

The Department of Telecommunications had calculated Airtel”s AGR dues to be over Rs 35,500 crore in licence fees, spectrum usage charges, interest and penalties.

The subscription to the fund raising for $3 billion issue closed on Tuesday.

The QIP issue price was at a discount of 1.57 per cent to the stated floor price of Rs 452.09 per equity share. Airtel embarked on a mega fundraising exercise, the proceeds of which will be used to pay adjust the dues.

Shareholders of telecom operator had earlier this month approved proposals to raise up to $2 billion in equity and another $1 billion in debt.

Airtel announced the closure of the issue period for the QIP and fixed the issue price at “Rs 445 per equity share which is at a discount of 1.57 per cent to the floor price of Rs 452.09 per equity share”.

As many as Rs 32.35 crore equity shares are being allotted to eligible buyers, as part of the QIP, the company said in a regulatory filing.

The special committee of directors for the fundraising exercise also cleared the terms of foreign currency convertible bonds including the issue price.

“FCCBs due 2025, convertible into fully paid-up equity shares of face value of Rs 5 each of the company at a price of Rs 534 per conversion equity share to initial purchasers subject to receipt of funds, satisfaction of other conditions precedent and settlement as per applicable laws and procedures and relevant agreements,” the filing said.–IANS

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