New Delhi: Telecom Bharti Airtel’s operator looks for strategic investors through the allocation of preferential equity shares, which is scheduled to be discussed at the Board meeting on January 28, according to sources.
A source, which does not want to be named, said the main objective of the stock allocation of preference is not affected by any responsibility pressure but tends to be onboarding strategic partners that are in harmony with the company’s long-term business objectives.
Jefferies’s equity research, in a report, said Bharti Airtel’s announcement to consider the issuance of equity on a preferential basis has been surprising because there is no direct need for capital, in its view.
“Publishing to lead strategic investors that increase business offers / digital will look positive; However, every major acquisition will be seen negatively,” said the report.
Bharti Airtel has told the exchange that the board will be on January 28, consider proposals for issuance of equity capital through preferential problems.
However, it does not determine the quantum of increasing capital or time.
“The publication is for non-promoters who imply that promoter shares in the company will get a verticile to post potential problems,” Jefferies said.
Bharti Airtel has a payment that was cleaned in December for the spectrum obtained through auction in 2014.
The company pays Rs 15,519 Crore to the Department of Telecommunications for 128.4 MHz spectrum (including Telenor Spectrum) obtained by Rs 19,051 Crore in 2014.
Net debt in 2014 .
At the company was around Rs 1.66 lakh crore on September 30, 2021.
Jefferies said the move appeared as a surprise because the company recently made a spectrum payment, could call the issuance of the issuance of its rights delayed RS 15,700 crore at a month’s notice, Recently, climbing rates will increase further cash flow and there is no 5G auction visibility in the near future.
“Given that Bharti’s business immediately does not need capital, the issuance of preferential equity can be caused by strategic investors who enter Bharti Airtel or acquisition by Bharti Airtel,” said the report.