New Delhi: India's largest telecommunications services provider Bharti Airtel Ltd Friday said it will sell 5% stake in the company to Qatar Foundation Endowment for $1.26 billion (Rs 67.96 billion) to strengthen its capital structure and fund future growth plans.
Shares of the Indian telecom giant went up as much as 4.7% on the Bombay Stock Exchange after the announcement.
Bharti Airtel will issue 199.9 million shares to Qatar Foundation Endowment (QFE) at Rs 340 per piece, or a 7.3% premium to Thursday's closing price of Rs 316.70 on BSE.
"This strategic partnership with QFE demonstrates the confidence they have in the company and our strategy for growth. In addition, this agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India. We look forward to a long and fruitful partnership with QFE," Sunil Bharti Mittal, chairman of Bharti Airtel said in the statement.
QFE mandated Goldman Sachs as sole financial advisor for the deal, Bharti Airtel said.
Shares of the company were trading at Rs 317.60, up 0.28%, on BSE at 1.28 pm today.