Bharti Airtel's FCCB holders exercise option to convert $ 5.1 million of bonds into equity

5 Apr 2023 , 09:21 AM

Bharti Airtel announced on Tuesday that the allocation of equity worth $5.1 million (or about Rs 42 crore) to holders of its foreign debt bonds issued in January 2020 at a price of Rs 521 per share has been approved.

In January 2020, Airtel issued $1 billion worth of 1.5% foreign currency convertible bonds (FCCBs), which are due in 2025.

At the option of the FCCB holders, the bonds were convertible into fully paid-up equity shares of the corporation for $5 apiece before February 2025.

On the BSE on Tuesday, Bharti Airtel shares ended 1.56% higher at 760.70.

‘We wish to submit that the Special Committee of Directors for Fund Raising has, today, April 4, 2023, approved the allotment of 706,161 fully paid-up equity shares of face value INR 5/- at a conversion price of INR 521/- per equity share to such holders of FCCBs upon receipt of notice for conversion of FCCBs of principle value of $5,108,000 from certain holders of FCCBs,’ Bharti Airtel said in an exchange filing.

In December 2022, Airtel had earlier distributed shares worth $8.6 million to the FCCB holders, bringing the balance due to $991.2 million.

The FCCBs were issued in January 2020, one week before the telecom operator was required by an October 2019 Supreme Court ruling on the computation of adjusted gross revenue to pay more than Rs35,500 crore in statutory dues as adjusted gross revenues (AGR).

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