New Delhi, Nov 17 (PTI) Bharti Airtel on Friday said its committee of directors has approved allotment of 14.16 lakh fully paid-up equity shares at a conversion price of Rs 518 per equity share to certain Foreign Currency Convertible Bond (FCCB) holders.

This followed the receipt of notice for conversion of FCCBs of principal value of USD 10,188,000 from the FCCBs holders.

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"We wish to submit that upon receipt of notice for conversion of FCCBs of principal value of USD 10,188,000 from certain FCCBs holders, the special committee of directors for fund raising 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," Bharti Airtel said in a BSE filing.

Put simply, FCCB is a quasi-debt instrument. While it serves as a bond by making regular coupon and principal payments, these instruments also grant the bondholder, stock conversion option.

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

Following the special committee's share allotment nod, the paid-up equity share capital of the company has increased.

Further, the outstanding principal value of FCCBs, as listed at Singapore Exchange Limited, stands reduced to USD 577.506 million, the company informed.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)