The government of Singapore backs Airtel in the Battle: Bharti Airtel has burned billions of cash, and the 13th richest man in the world, Mukesh Ambani, with the Reliance Jio owner, Vodafone Idea, has a pile in the fight to fight as much as India’s telecom Gone market. As the mountain of debt has put the existence of Airtel in jeopardy, the company issue is issuing 250 billion rights issue. And it got the support of the Government of Singapore. According to an exchange filing, GIC Pvt Ltd is subscribing to the fifth share of Singapore sovereign wealth fund issue.
The government of Singapore backs Airtel in the Battle
India’s 50 billion investment will be the first GIC in India’s competitive telecom sector This step is preceded, given that SingTel, the largest mobile operator in Singapore, recently has been in the company. After investing 27 billion, he has left his stake in Airtel.
In fact, both promoters of Singtel and Airtel will invest rs118 billion in the rights issue. After the rights issue, SingTel is expected to hold a 35% stake in the company. Earlier this month, Moody’s, an international rating agency, changed Airtel’s debt to “significant credit risk” in view of the problems of the cash flow of the over-leveraged nature of the company. At the end of December 2018, Airtel’s net debt was slightly above the burden of 1.06 trillion.
Last week, the board of Airtel approved the plan to raise 320 billion rupees from the capital market, coming from the sale of 250 billion shares coming in and remaining through the issue of foreign currency-denominated bonds. For the latest updates, you can visit www.indiatimelines.com.
The capital raising plan will enable India’s second largest telecom provider to meet its capital expenditure targets, repay loans and take Reliance Jio effectively, which will consistently increase its market share since the launch in September 2016 and Subscribers are eaten at the base.
Fundraising plans will help Airtel reduce the burden of its debt, but according to a rating agency S & P Global, due to the ongoing capital expenditure between price competition from Jio and Vodafone Idea, to stabilize its credit rating Can not be enough for.