Industry

Bharti said to mull roping in a ‘strategic investor’

A worker cleans a Bharti Airtel logo inside its shop in Kolkata February 2, 2011. Improved prospects in Africa and the launch of 3G services in India have brightened the outlook for Bharti Airtel after currency losses led to a bigger-than-forecast drop in quarterly profit. REUTERS/Rupak De Chowdhuri (INDIA - Tags: BUSINESS)

A worker cleans a Bharti Airtel logo inside its shop in Kolkata February 2, 2011. Improved prospects in Africa and the launch of 3G services in India have brightened the outlook for Bharti Airtel after currency losses led to a bigger-than-forecast drop in quarterly profit. REUTERS/Rupak De Chowdhuri (INDIA - Tags: BUSINESS)

Telecom operator Bharti Airtel is looking to onboard a strategic investor through allocation of preferential equity shares, which is scheduled to be discussed at its board meeting on January 28, according to sources.

A source, who did not wish to be named, said the primary goal of the preferential share allocation is not influenced by any sort of liability pressure but is inclined towards onboarding a strategic partner aligned with the long-term business objectives of the company.

Jefferies Equity Research, in a report, said Bharti Airtel’s announcement to consider an equity issuance on preferential basis had come as a surprise as there was no immediate need for capital, in its view.

“An issuance to usher in a strategic investor that boosts its enterprise/digital offerings will be seen positively; however, any large acquisitions will be viewed negatively,” Jefferies noted.

Bharti has notified the exchanges that its board will on January 28 consider issuance of equity capital through a preferential issue.


Our code of editorial values

This article is closed for comments.
Please Email the Editor

Printable version | May 18, 2022 2:18:43 pm | https://www.thehindu.com/business/Industry/bharti-said-to-mull-roping-in-a-strategic-investor/article38325875.ece