Bharti Airtel, on 17 November, announced that its committee of directors have approved the allotment of 14.16 lakh equity shares at a conversion price of Rs 518 per share to selected FCCB (Foreign Currency Convertible Bond) holders.

In its regulatory filing on 17 November, the company said, “We wish to submit that upon receipt of notice for conversion of FCCBs of principal value of $10,188,000 from certain FCCBs holders, the special committee of directors for fundraising has, today approved the allotment of 1,416,607 fully paid-up equity shares of face value Rs 5 each at a conversion price of Rs 518 per equity share to such holders of FCCBs.”

In simple terms, FCCB is a quasi-debt instrument which serves as a bond by making regular coupon and principal payments. Moreover, these instruments also provide the bondholder with an option to convert into stock.

The company added, “This is in reference to the $1,000 million 1.50 per cent Convertible Bonds due 2025 issued by the company vide…circular dated 14 January, 2020, convertible into company’s fully-paid up equity shares of Rs 5 each at any time on or after 27 February, 2020 and up to the close of business hours on 07 February, 2025, at the option of the FCCB holders.”

After receiving the approval from the committee for share allotment, the company’s paid-up equity share capital increased.