Bharti Airtel has announced that it has transformed foreign debt bonds valued at USD 49.87 million, issued in January 2020, into equity.
In January 2020, Bharti Airtel successfully raised USD 1,000 million by issuing foreign currency convertible bonds (FCCBs). These bonds provide the holders with the option to convert their bonds into fully-paid equity shares of Bharti Airtel, each with a face value of INR 5.
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The conversion was applicable at any time starting from February 27, 2020, and remains applicable until the end of business hours on February 7, 2025, at the discretion of the bondholders. This arrangement allows investors the flexibility to either retain the bonds or convert them into equity, potentially benefiting from any increase in the company's share price during the conversion period.
"We wish to submit that upon receipt of notices for conversion of FCCBs of principal value of USD 49.87 million from certain FCCBs holder(s), the Special Committee of Directors for Fund Raising has, today i.e. on June 11, 2024, approved the allotment of 6,934,266 fully paid-up equity shares of face value INR 5 each at a conversion price of INR 518 per equity share to such holder(s) of FCCBs," Bharti Airtel stated in a regulatory filing.
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Following this transaction, the company confirmed that the outstanding principal value of FCCBs listed on the Singapore Exchange Limited has now been reduced to USD 80.60 million.
Meanwhile, in Bharti Airtel's recent financial results, the telecom operator revealed a 31% decrease in its consolidated net profit for the March 2024 quarter, amounting to INR 2,072 crore. This marked a decline from the previous year's quarterly earnings of INR 3,006 crore, significantly missing projections, which hovered around INR 3,274 crore.
However, revenue from operations experienced a 4% increase to INR 37,599 crore between January and March 2024, compared to INR 36,009 crore in the corresponding period of the previous year.
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