The parent of Bharti Airtel Ltd. is seeking about $1 billion by selling a stake in the mobile carrier after its share price hit a record on signs the years-long price war is about to end.
Bharti Telecom Ltd. is selling 150 million Bharti Airtel shares at a floor price of Rs 558 each, according to terms of the deal obtained by Bloomberg. That implies a discount of about 6 per cent to its close on Friday.
Bharti Airtel shares climbed to a record Rs 598.8 last week after it posted a 14 per cent increase in user revenue in the quarter through March. Investors have been betting the worst is behind the New Delhi-based operator as it faces fewer competitors than in the recent past.
The entry of billionaire Mukesh Ambani's Reliance Jio Infocomm Ltd. in 2016 accelerated a consolidation in the market with a billion-plus subscribers -- second only to China, forcing some to merge and a few to drop out. The shake-up has left Jio and Vodafone Idea Ltd. as Bharti Airtel's only non-state rivals.
The deal is one of the largest follow-on offerings in the country this year, data compiled by Bloomberg show. Bharti raised $3 billion in January from the sale of shares and convertible bonds to help pay additional airwave and license fees after telecom operators lost a court case.
JPMorgan India Pvt. is the sole placement agent for the block trade.