Bharti Airtel Ltd. is planning to raise up to 210 billion Indian rupees ($2.84 billion) through a rights issue, the proceeds of which will be used by the telecom operator to invest in 5G technology.
The company, which plans to issue 392.29 billion shares, has fixed the price at INR535 per share, it said late Wednesday.
The right issue will open on Oct. 5 and close on Oct. 21.
Singtel, which has a 14% stake in the company, said Thursday that it will subscribe to its portion of the rights issue costing it $405 million.
“Our participation in this rights offering underscores our confidence in Airtel’s growth prospects," Singtel’s chief financial officer Arthur Lang said.
The company said that the investment was part of Singtel’s strategic plan as smartphone users in India are expected to reach over 900 million in the next two years.
Airtel is one of India’s leading telecommunications company, with operations in 18 countries across South Asia and Africa and a mobile customer base of over 440 million.
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