Airtel shares rally after co raises USD 750 mn

Shares of Bharti Airtel advanced over 4 percent in early trade on Thursday as the telecom operator raised USD 750 million (about Rs 5,330 crore) from investors based in Asia, Europe, and the US through a hybrid financial instrument. On the BSE, the scrip was trading at Rs 375.40, up 4.5 percent from its previous close.

The stock was up 4.55 percent at Rs 375.75 on the NSE. The company on Wednesday said it has raised USD 750 million (about Rs 5,330 crore) from investors based in Asia, Europe, and the US through a hybrid financial instrument.

Bharti Airtel said in a statement that "its wholly-owned subsidiary Network i2i Limited, has priced ... offering of USD 750 million 5.650 percent subordinated perpetual securities." The company said it will use the proceeds for refinancing, investments in subsidiaries and general corporate purpose.

The securities have been distributed to fund/asset managers and insurance companies, a banker closely involved in the transaction said. A perpetual bond is fixed income security with no maturity date that yields a steady flow of interest payments.