NEW DELHI: Telecom operator Bharti Airtel on Wednesday said it has raised Rs 14,400 crore (around $2 billion) from qualified institutional buyers at Rs 445 per share.In a regulatory filing, the company said its board approved the allotment of 323,595,505 equity shares at a discount of 1.57 per cent to the floor price of Rs 452.09.Shares of Bharti Airtel closed 0.50 per cent lower at Rs 467.10 on BSE.The Issue opened on January 8, and closed on January 14.The amount raised will be used for payment of statutory dues and capital expenditure.
The telecom major is battling statutory dues of over Rs 35,500 crore after Supreme Courts judgment on adjusted gross revenue (AGR) in October.The telco is also in the process of issuing foreign currency convertible bonds (FCCBs) of up to $1 billion with a provision to raise an additional $250 million, depending on the demand.Brokerages were largely positive on the stock post the fundraising announcement.Morgan Stanley maintained an overweight stance on Bharti Airtel with a target price of Rs 530 per share.
The primary goal of QIP is to take care of AGR liabilities, the brokerage said, adding that it sees 'faster-than-expected price recovery' as a key risk to the upside.Credit Suisse kept an outperform rating with a target price of Rs 550 per share.
Strong mobile 4G data subscriber growth in Q3FY20 and weak trends in home broadband and digital TV continue, it said