Telecom major Bharti Airtel has cleared Rs. 6,796 crore, or over 10 per cent, of its debt by using the equivalent sum of amount it received by selling five per cent stake to Qatar Foundation Endowment last month.
The company said on Monday in a statement “it has retired equivalent debt from the proceeds (Rs. 6,796 crore) of the preferential allotment in June 2013 of 5 per cent equity shares in Bharti Airtel at the rate of Rs. 340 per share to Qatar Foundation Endowment“.
Bharti Airtel had reported a net debt of Rs. 63,839.5 crore as on March 31, 2013.
“This significant debt reduction will result in an improvement in the capital structure and balance sheet leverage for the Company,” Airtel said.
Last month, Bharti had issued 199,870,006 new equity shares, representing five per cent equity stake in the company, to Qatar Foundation Endowment for a total consideration of Rs. 6,796 crore.