Bharti Telecom Raises Rs 11,150 Crore Via Six Bonds
The flagship company of Bharti Enterprises sold six bonds maturing in three, four, five, seven, and 10 years, and on Nov. 15, 2027.
Bharti Telecom has raised a total of Rs 11,150 crore through the issue of six bonds of different maturities, according to people with knowledge of the development told NDTV Profit.
The flagship company of Bharti Enterprises sold six bonds maturing in three, four, five, seven, and 10 years on Nov. 15, 2027.
The issuances, which were fully subscribed, saw demand largely from mutual funds, pension funds and insurance companies, the above-mentioned people said.
The company received bids on the exchanges for more than Rs 22,000 crore and the average cutoff was 5 basis points lower than the fixed coupon, the people said.
The coupons on these bond issuances were in the range of 8.25–8.9%.
The bonds, rated AA+ by Crisil Ratings, will be allotted on Nov. 5. Proceeds of this bond issue will be used for making investments and payment of all transaction costs in connection with such investments.
Barclays Bank and Standard Chartered Bank are the lead managers to this bond issuance.
In December 2023, the company had raised Rs 8,000 crore through three bonds maturing in two, three and five years.
Bharti Telecom is the parent of telecommunications company Bharti Airtel Limited.
Bharti Airtel Ltd.'s consolidated net profit fell 12% sequentially in the second quarter of the current financial year, missing analysts' estimates.
The telecom giant reported a profit of Rs 4,153 crore during the July–September period as compared to Rs 4,159 crore in the previous quarter, according to an exchange filing on Monday. Analysts tracked by Bloomberg had a consensus estimate of Rs 4,398 crore.
Shares of Bharti Airtel closed 1.56% lower to Rs 1,591.25 apiece, compared 1.27% decline to benchmark NSE Nifty 50. It has risen 70.82% in the last 12 months and 54.03% on a year-to-date basis.
29 out of the 35 analysts tracking the company have a 'buy' rating on the stock, four recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 12.8%.
