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Singtel injects $525 million in Airtel as competition hots up

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New Delhi, March 7 (IANS) As competition mounts, Singapore Telecommunications Ltd (Singtel) will buy roughly $525 million worth Bharti Airtel stock as part of its Indian telecom partner’s plan to raise $4.6 billion through shares and bonds.

Sunil Mittal’s Airtel, fighting a low tariff war unleashed by rival telecom firm of Billionaire Mukesh Ambani’s Reliance Jio, hopes to use the money to cut debt and strengthen its balance sheet at a time when the Indian telecom industry is trying to come to terms with a price war triggered by the entry of Reliance Jio Infocomm Ltd.

Under the fundraising plan, announced last month by the Sunil Mittal company, Airtel plans to sell new shares worth Rs 25,000 crore ($3.6 billion) for Rs 220 apiece, or a nearly 30 per cent discount to its current stock price. It will raise another Rs 7,000 crore via foreign-currency denominated bonds.

“With balance sheet strength being a concern among incumbents especially at a time when continued investments in 4G are paramount, this move should be a positive,” Citi analyst Saurabh Handa had said in a note on Airtel ‘s rights issue.

Airtel’s net debt stood at more than $15 billion or about Rs 1 lakh crore as of December 31, 2018, while its current market value is around $17.5 billion. Singtel had a net debt $9.75 billion ($7 billion) at the time.

Singtel will buy 170 million new shares in Airtel, India’s No.2 telco in terms of subscribers. This will dilute its effective interest in Airtel to 35.2 per cent from 39.5 per cent.

Singapore’s largest telecom operator has often said it holds a long-term view of its investment in Airtel, which it reiterated again on Thursday. It owns just under 50% of Airtel’s holding company Bharti Telecom.

“Our participation in this rights offering … reflects our long-standing commitment to Airtel and the confidence in the future of the Indian market,” Arthur Lang, CEO of Singtel’s International Group, said on Thursday.

Last month, Singtel reported a 14 per cent drop in third-quarter net profit, hurt as Airtel’s earnings fell by three quarters in the December quarter.

There is huge pricing pressure in the Indian telecom market and after the consolidation, there are now from 4 operators.

Reliance Jio backed by Parent Reliance Industries has been burning cash aggressively to gain market share.

After facing a huge drop in profits due to Jio Airtel, however, is pushing for offshore growth amid the price war and lacklustre performance at home.

Last month Airtel ‘s Africa unit, Airtel Networks Kenya Ltd, has agreed to merge with Telkom Kenya Ltd, the East African nation’s smallest telecom operator to create a stronger challenger to market leader Safaricom.

Airtel’s two other major shareholders – Bharti Group and Bharti Telecom – will subscribe to their full entitlement in the rights issue, while Singapore’s state-backed GIC will commit about Rs 5000 crore, Airtel and Singtel said.

–IANS
ana/sn/prs

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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

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World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

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