FILE PHOTO: Bharti Enterprises Chairman Sunil Bharti Mittal (FABRICE COFFRINI/AFP via Getty Images)

Bharti Telecom, the promoter firm of Bharti Airtel, plans to raise $1 billion through equity sale to become debt free.

The firm plans to dilute 2.75 per cent stake with floor price of Rs 558 per share through secondary placement.

“Bharti Telecom has roped in JP Morgan for the raising $1 billion by selling 150 million equity shares at a price of Rs 558 per cent per unit. It is a discount of six per cent on closing price of Rs 593.2 apiece as on May 22,” reports said.

The $1 billion raise will make the promoter of Bharti Airtel debt free. Bharti Telecom holds around 41 per cent stake in Bharti Airtel, while foreign promoter entities own 21.46 per cent stake in the telecom firm.

Public shareholders have around 37 per cent stake in the company. Sunil Bharti Mittal and his family own around 52 per cent stake in Bharti Telecom.

Airtel’s shares ended 0.2 per cent down at Rs 593 on Friday (22) in Bombay Stock Exchange.