A man speaks on his mobile phone in front of an advertisement for Bharti Airtel along a road in Jammu February 8, 2012. Bharti Airtel Ltd disappointed investors by posting its eighth straight quarter of falling profits as the world’s No. 5 mobile carrier by subscribers was hit by higher tax and interest costs, though its nascent but key Africa business improved. REUTERS/Mukesh Gupta MUMBAI, Aug 30 (Reuters Breakingviews) – Bharti Airtel (BRTI.NS) is dialling up the differences. Indias second largest telecom operator by subscribers announced plans for a rights issue to raise 210 billion rupees, about $2.9 billion. It puts the $44 billion group on a stronger financial footing to weather an ongoing price war and face a 5G rollout. Shares will be offered at a not-too-large discount of 10% to Fridays closing price, and the deal is underwritten by top investor Sunil Mittal Bharti. It underscores a solid position in a cutthroat industry.
Number three operator Vodafone Idea (VODA.NS) is clinging on to 255 million subscribers but is straining under net debt of more than 11 times its EBITDA in the year to March 2020. It also faces a funding crunch by December if it doesnt refinance or find new strategic investors. Backers Kumar Mangalam Birla and Britains Vodafone (VOD.L) are demanding a minimum floor price for data after Reliance Industries (RELI.NS) Jio took the top position by offering dirt cheap deals. With the widening funding gap between rivals, Bhartis plans tee up a duopoly. (By Una Galani).
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Bharti Airtel’s fundraising dials up India duopoly – Reuters
