Mumbai : Telecom major Bharti Airtel’s board on Monday approved a plan to raise around Rs 16,500 crore through issue of non-convertible debentures (NCD) and foreign currency bonds for refinancing debt and paying for spectrum liabilities. The company’s board has approved “issuance of non-convertible debentures of up to Rs 10,000 crore on a private placement basis”, the company said in a regulatory filing to the BSE. The foreign currency bonds up to a limit of $1 billion (around Rs 6,500 crore) would be issued in one or more tranches, it said.
“Any funds, if raised from the issuance of aforesaid debt securities, shall be used in routine treasury activities, including refinancing of existing debt and spectrum liabilities,” the filing added.
Airtel will now approach shareholders for final approval of the propose raising of debt. As on December 31, 2017, the company’s consolidated net debt stood at Rs 91,714 crore higher than Rs 91,480 crore in the previous quarter.
Shares of the company jumped 4.68 per cent to end at Rs 420.75 on BSE. During the day, it soared 5.68 per cent to Rs 424.80. At NSE, shares of the company climbed 4.82 per cent to close at Rs 421.55. The stock was the biggest gainer among the blue-chips on both Sensex and Nifty. The company’s market valuation went up by Rs 7,515.61 crore to Rs 1,68,190.61 crore.