Bharti Airtel Limited raised Rs.6,193.9 crore by selling 10.3 per cent stake in Bharti Infratel Limited today. The deal was aimed at providing the company sufficient funds to tackle growing competition in the telecom sector.
Bharti Infratel Limited is a subsidiary tower company of Bharti Airtel, with the stake sold to Canada Pension Plan Investments Board (CPPIB) and KKR, a private equity firm. Under the deal, the company sold 190 million shares for Rs.325 per share.
The new entities are now the largest public shareholder block in the company. Bharti Airtel will use these funds to reduce its current debt, which stands at Rs.67,763 crore after it acquired Telenor.
KKR had previously invested in the company in 2008 and 2015. The combined entities now own 10.3 per cent equity in Bharti Infratel, with Bharti Airtel owning 61.7 per cent equity.
The Indian telecom sector has seen a number of developments in the recent past, including the merger between Vodafone and Idea. Bharti Airtel, which was the market leader in the mobile connectivity space has been pushed to the second spot, with new financial assistance expected to help it recover lost ground.