India's leading telecom service provider, Bharti Airtel might be planning to issue new shares to the public or institutional investors in order to reduce its debt.
A report in The Economic Times indicated that the company is considering four options to raise funds.
If the company issues new shares, it will be the first time since 2002. A new report had said that the company is planning a follow-on offer of shares and external commercial borrowing.
Any decision will first be approved by the board of directors of the company. Bharti has roped in HSBC and Standard Chartered for the possible share sale, according to the report.
Some suggest that the company might also consider listing its telecommunications tower unit, Bharti Infratel Ltd to raise funds and pay off some of its debts. The company had earlier planned to list the unit but had to abandon the plans due to equity market conditions.
An analyst said that Bharti enjoys scale of operations and healthy image in the global debt market and this will allow the company to raise fresh debt from international markets.