BHARTI AIRTEL Share price

OUR HISTORY AND CORPORATE STRUCTUREBharti Tele-Ventures was incorporated on July 7 1995 as a company withlimited liability under the Companies Act for promotingtelecommunications services. Bharti Tele-Ventures received acertificate for commencement of business on January 18 1996. Theshareholding structure of Bharti Tele-Ventures prior to and after thisOffering is set forth below: Number of % Number of % ho- Shareholders Equity Shares hold- Shares lding ing after the after prior Offer the to -ing(1) Offe- the ring Offe- Indian Shareholding : ring Bharti Telecom (2)(3) 859986028(2) 51.6% 859986028 46.4%Other shareholders 35090000 2.1% 35090000 1.9%Total Indian Shareholding 895076028 53.7% 895076028 48.3%Foreign Shareholding :Pastel Limited (3) 295659650 17.7% 295659650 16.0%Brentwood InvestmentHoldings Limited (4) 343215268 20.6% 343215268 18.5%AIF entities 67244716 4.0% 67244716 3.6%New York Life Insurance Inc. 13860979 0.83% 13860979 0.75%Other shareholders 52973426 3.2% 52973426 2.9%Total Foreign Shareholding 772954039 46.3% 772954039 41.7%Public - - 185336700 10.0%Total Shareholding 1668030067 100.0% 1853366767 100.0%(1) This table assumes the size of the Offering is 185336700 equityshares.(2) The beneficial interest of Mr.Sunil Bharti Mittal the promoter ofBharti Telecom in Bharti Tele-Ventures is 39.27% of the total outstanding equity shares prior to this Offering and 35.35% after thisOffering. This beneficial interest is held directly and indirectly byhim and members of his family through Bharti Overseas Trading CompanyBharti Global Limited Indian Continent Investment and BhartiEnterprises. For further details see "Capital Structure" and "OurPromoter".(3) Pastel Limited is an investment company of SingTel. It owns 17.7%and 20% in Bharti Tele-Ventures and Bharti Telecom respectively priorto the Offering. Pastel Limited has subscribed and paid for US$75million compulsorily convertible debentures of Bharti Telecom. Thesesubject to applicable regulations are convertible into 1884896 equityshares in the issued capital of Bharti Telecom or at the option ofPastel into 68.75 million equity shares of Bharti Tele-Ventures heldby Bharti Telecom. If the debentures are converted into shares ofBharti Telecom Pastel Limited will own 26.96% shares in BhartiTelecom. Such shares together with its existing direct shareholding inBharti Tele-Ventures will represent an effective 31.63% of the totaloutstanding equity shares in Bharti Tele-Ventures prior to the Offeringand an effective 28.46% after the Offering. However if Pastel Limitedacquires equity shares of Bharti Tele-Ventures from Bharti Telecom itwill own an effective 31.35% of the total outstanding equity shares ofBharti Tele-Ventures prior to the Offering and an effective 28.22%after the Offering.(4) Brentwood Investment Holdings Limited is the investment company ofWarburg Pincus. For additional details on the Company's shareholdingsee "Capital Structure". History and Major EventsThe Company was initially formed as a wholly-owned subsidiary of BhartiTelecom Limited. The chronology of events since Bharti Tele-Ventureswas incorporated in 1995 is as follows:Calendar year & Events1995- Bharti Cellular launched cellular services'AirTel'in Delhi1996- STET International Netherlands NV or STET a company promoted byTelecom Italia Italy acquired a 20% equity interest in BhartiTele-Ventures- Bharti Telenet launched cellular services in Himachal Pradesh1997 - British Telecom acquired a 21.05% equity interest in Bharti Cellular- Bharti Telenet obtained a license for providing fixed-line servicesin Madhya Pradesh circle- Bharti Telecom and British Telecom formed a 51% : 49% joint ventureBharti BT for providing VSAT services1998 - Bharti Telecom and British Telecom formed a 51% : 49% joint ventureBharti BT Internet for providing Internet services- First Indian private fixed-line services launched in Indore in theMadhya Pradesh circle on June 4 1998 by Bharti Telenet thereby endingfixed-line services monopoly of DoT (now BSNL)1999 - Warburg Pincus (through its investment company Brentwood InvestmentHoldings Limited) acquired a 19.05% equity interest in BhartiTele-Ventures- Bharti Tele-Ventures (by acquiring a 63.45% equity interest in SCCellular Holdings) acquired an effective 32.36% equity interest inBharti Mobile (formerly JT Mobiles) the cellular services provider inKarnataka and Andhra Pradesh circles- New York Life Insurance Fund or NYLIF acquired a 3% equity interestin Bharti Cellular2000 - Bharti Tele-Ventures acquired an effective equity interest of 40.5%in Bharti Mobinet (formerly Skycell Communications) the cellularservices provider in Chennai- Bharti Tele-Ventures acquired a 30.2% equity interest of TelecomItalia in Bharti Telenet and 18.8% from Bharti Telecom thereby makingBharti Telenet a 100% subsidiary of Bharti Tele-Ventures- SingTel (through its investment company Pastel Limited) acquiredSTET's 15.3% equity interest in Bharti Tele-Ventures- Bharti Tele-Ventures acquired an additional effective 41.64% equityinterest in Bharti Mobile (by acquiring the remaining 36.55% equityinterest in SC Cellular) resulting in Bharti Tele-Ventures holding aneffective 74% equity interest in Bharti Mobile.2001 - Bharti Tele-Ventures acquired NYLIF's 3% equity interest in BhartiCellular- Bharti Telesonic entered into a joint venture Bharti Aquanet withSingTel for establishing a submarine cable landing station at Chennai- Bharti Tele-Ventures issued additional equity for approximately US$481.30 million to SingTel Warburg Pincus AIF group IFC NYLIF andSeejay Cellular and Bharti Telecom- Bharti Cellular acquired a 100% equity interest in Bharti Mobitel(formerly Spice Cell ) the cellular services provider in Kolkata- Bharti Tele-Ventures acquired 85% and 15% in Bharti Telespatial fromBharti Telecom and Intel respectively- Bharti Tele-Ventures acquired a 44% equity interest in BhartiCellular from British Telecom thereby making Bharti Cellular its 100%subsidiary- Bharti Tele-Ventures acquired an additional 49% equity interest inBharti Mobinet from Millicom International and BellSouth Internationalthereby owning 89.5% equity interest in Bharti Mobinet which wasfurther increased to 95.3% following an issuance of additional equityshares by way of rights issue- Punjab license restored to Bharti Mobile by the DoT and migration toNTP - 1999 accepted- Bharti Cellular entered into license agreements to provide cellularservices in eight new circles following the fourth operator cellularlicense bidding process- Bharti Telenet entered into license agreements to provide fixed-lineservices in the Haryana Delhi Tamil Nadu and Karnataka circles- Bharti Telesonic entered into a license agreement with the DoT toprovide national long distance services across India- Bharti Aquanet Bharti Telesonic and Bharti Cellular entered intolicense agreements with the DoT to provide ISP services in India- Bharti Telesonic launched national long distance services under thebrand name of "IndiaOne"- Bharti Telenet launched fixed line services in Haryana under thebrand name of "TouchTel"