ButSpeak.com
News which Matters.
Bharti Airtel Ltd. announced its conversion of foreign debt bonds valued at Rs 417 crore into equity, marking a strategic financial move by the telecom giant. The conversion, originating from bonds issued in January 2020, signifies a significant step in the company’s capital restructuring.
Back in January 2020, Bharti Airtel had raised $1,000 million through foreign currency convertible bonds (FCCBs), offering conversion into fully-paid up equity shares of Rs 5 each. The conversion window for FCCB holders was open from February 27, 2020, until the close of business hours on February 7, 2025, in accordance with regulatory requirements.
The company disclosed that upon receiving notices for the conversion of FCCBs with a principal value of $49.87 million, the Special Committee of Directors for Fund Raising approved the allotment of 6,934,266 fully paid-up equity shares, each with a face value of Rs 5, at a conversion price of Rs 518 per equity share on June 11, 2024.
As a result of this transaction, Bharti Airtel has effectively reduced the outstanding principal value of FCCBs listed on the Singapore Exchange Limited to $80.60 million, underscoring its commitment to optimizing its financial structure and enhancing shareholder value.
