Promoter Bharti Telecom on May 26 sold a 2.75 percent stake in telecom provider Bharti Airtel, raising more than Rs 8,433 crore (around $1.15 billion).
"Bharti Telecom today sold 2.75 percent stake in Bharti Airtel to institutional investors through an accelerated book-building process in the secondary market," the company told the Bombay Stock Exchange.
The sale proceeds would be utilised to fully repay the debt at Bharti Telecom which will “become a zero-debt company”, allowing it the stronger financial flexibility to provide any additional shareholder support Bharti Airtel may need, Harjeet Kohli, Group Director, Bharti Enterprises, said.
JP Morgan India acted as the sole placement agent for the secondary placement.
After the transaction, Bharti Group and Singtel (collectively promoter group) would continue to own a majority stake in Bharti Airtel at 56.23 percent, the company said.
The allocation was done to over 50 accounts, with the top 10 getting 2/3rd of overall allocation, the company added.
The stake sale was oversubscribed multiple times with healthy mix of all categories of investors, long only and hedge fund investors across geographies in India, Asia, Europe and the US, Airtel said.
The sale was anchored by several existing and new shareholders and several marquee global mutual fund complexes, sovereign wealth funds, multi-strategy funds and domestic institutional investors in sizable quantities, the company said.
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