Bharti Airtel Converts Rs 417 Cr Worth of Foreign Debt Bonds to Equity

In January 2020 Bharti Airtel raised $1,000 Million through foreign currency convertible bonds which were convertible into the company’s fully paid-up equity shares of Rs.5 each at any time on or after February 27, 2020, and up to February 7, 2025. On 11 June 2024, Bharti Airtel announced that it had converted $49.87 Million worth of these foreign debt bonds into equity. 

About the company:

Bharti Airtel is a leading telecommunication company, renowned globally. Headquartered in New Delhi, it ranks amongst the top 3 mobile services providers around the world. The global network of its ICT services is spread in 17 countries across Asia and Africa. With over 490 Million customers across its operations, the company is well diversified into mobile services, home services, and Digital TV services. It is the second-largest mobile network operator in India and the second-largest mobile network operator in the world.

Regulatory filing statement:

The statement read that the Special Committee of Directors for Fund Raising approved the allotment of 6,934,266 fully-paid equity shares of face value Rs.5/- each at a conversion price of Rs. 518/ equity share to such holders of FCCBs. Consequently, the paid-up equity share capital of the Company increased to Rs.28,944,725,322.50, which is divided into 5,690,873,149 fully paid-up equity shares of INR 5/- each and 392,287,662 partly paid-up equity shares of INR 5/- each. Now, in addition to this transaction, the outstanding principal value of FCCBs listed on Singapore Exchange Limited reduced to USD 80.60 Million.

Company’s Financials

Bharti Airtel in Q4FY24 recorded a revenue of Rs. 37,599 Crore and a net income of Rs. 2,072 Cr. up by 4.4% YoY and Rs. 3,006 Cr respectively. The EBITDA stood at Rs.19,590 Cr with a margin of 52.1% in Q4FY24.

Conclusion:

Bharti Airtel shows successful operations by converting Rs. 417 Cr worth of foreign debt into equity shares.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.