Bharti Airtel Repays Rs 6796 Crore Debt
DSIJ Intelligence / 08 Jul 2013
The telecom giant has sold a part of its stake in the company. The amount garnered has been used to ease off some of its debt burden, which was a much needed move. The stock has reacted positively to this development.
Bharti Airtel, which has a debt of Rs 69022 crore on its balance sheet as of FY12, has repaid Rs 6796 crore of debt from the proceeds of a 5% stake sale to Qatar Foundation Endowment (QFE). The company has issued 199,870,006 new equity shares, representing 5% equity stake in the company to QFE for a total consideration of INR 6796 crore at Rs 340 per share. The deal is at 15.25% premium to its current market price of Rs 295. This takes the value of the firm to Rs 135920 crore.
With a debt of Rs 69022 crore, the debt-to-equity ratio stood at 1.36x. With the repayment of Rs 6796 crore, the debt level will come down to Rs 62226 crore, taking the debt-to-equity to 1.23x, marking a decrease of 13 basis points. This will result in 11% savings on the total interest burden of the company.
This is indeed a welcome move, as Bharti Airtel has been reeling under the borrowings during the 3G auction and for the acquisition of its African assets. The stock has hit an intraday high of Rs 307, up 4.07% from the closing levels seen on Friday, July 5, 2013.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.