India’s largest mobile operator, Bharti Airtel, is considering issuing new shares to the public or institutional investors in order to boost its balance sheet, according to sources close to the matter quoted by the Economic Times.
The company was not…
India’s largest mobile operator, Bharti Airtel, is considering issuing new shares to the public or institutional investors in order to boost its balance sheet, according to sources close to the matter quoted by the Economic Times.
The company was not immediately available for comment.
This issue would be the first since the company became public in 2002. HSBC and Standard Chartered have reportedly been mandated for the share sale.
Other options to bolster its revenues include external borrowings and a listing of its tower unit Bharti Infratel, the sources were quoted as saying.
As of 31 March 2012, Bharti Airtel had total liabilities of US$18.6bn. Its debt load has been weighed down by the acquisition of Zain’s African assets for US$10.7bn in 2010, and more specifically by a US$7.5bn loan taken out to finance the deal.
Some analysts therefore predict that Bharti may need a large amount of financing in the next few months, not only to repay its debt but also if it wants to participate in the upcoming 2G auction in India.