Airtel directors’ panel approves partial allotment of 36.4 million shares to LMIL

Airtel, which is one of the largest multinational telecommunication companies in India located in New Delhi. The company provides services in 2G, 4G LTE, 4G mobile services, Fixed Line Broadband, and Voice Services across the country. It is the second-largest mobile network operator in the world with almost 457.96 million subscribers.

On the other side, Bharti Airtel on Monday said its special panel of directors has approved the allotment of 36.4 million. While the equity shares on a preferential basis to Warburg Pincus affiliate at Rs. 600 issue price, as partial consideration towards Bharti Telemedia deal.

According to the contours of the recently-announced deal, Bharti Airtel will acquire a 20 percent stake in its DTH arm Bharti Telemedia from Warburg Pincus affiliate. Lion Meadow Investment Ltd for about Rs. 3,126 crore. The Special Committee of Directors for Fund Raising of the company has, as its meeting held today.

However, On March 22nd, 2021, approved the allotment of 3,64,69,913 equity shares of the face value of Rs. 5 each fully paid up, on a preference basis to Lion Meadow Investment Ltd, an affiliate of Warburg Pincus at an issue price of Rs. 600 per equity share. Moreover, the partial consideration other than in cash against the acquisition of 10,20,40,000 equity shares. While constituting 20 percent of the equity share capital of Bharti Telemedia, 

In conclusion, Lion Meadow will hold about 0.664 percent of the post-issue equity share capital of the company. While the paid-up equity share capital of the company stands increased to Rs. 2,746 crore. Airtel had earlier stated that Bharti Telemedia transaction will be discharged primarily via issuance of about 3.64 crore equity shares of Airtel at a price of Rs. 600 per share and up to Rs. 1,037.8 crore in cash.