Bharti allots 199.87 mn equity shares to Qatar Foundation

Bharti Airtel today said that it has completed allotment of 5 percent equity and also allotted 199,870,006 new equity shares to Qatar Foundation Endowment (QFE).

Airtel has debt of around Rs 65,000 crore and QFE investment would give a major boost of its capital structure and company's growth strategy.

The equity shares, having face value of Rs 5 each, have been issued at a price of Rs 340 each on a preferential basis for a total consideration of Rs 6,796 crores.

Commenting on the completion of the agreement, Sunil Bharti Mittal, chairman, Bharti said, "This is a landmark transaction for India and its telecom sector and a vote of confidence from one of the most respected investors in the world. We look forward to a long and fruitful partnership with Qatar Foundation Endowment."

Rashid Al-Naimi, acting chief executive officer, QFE said "We are delighted that our investment received overwhelming support from Bharti Airtel's existing shareholders, and look forward to supporting the long term strategic growth of the Company."

With the allotment of these new shares, the paid up share capital of the company stands increased to Rs 19,987,000,510 consisting of 3,997,400,102 equity shares of Rs 5 each.

On May 3, 2013 Bharti and QFE had announced a binding agreement for the above mentioned allotment. As part of the investment, QFE is entitled to one seat on the Board of Bharti.

QFE is an investment vehicle of the Qatar Foundation, controlled by Sheikha Moza Bint Nasser.