Airtel to chalk out fund raising plans

Bharti Airtel plans to raise capital, which will help the second largest telco meet its statutory dues, invest in network and spend in additional spectrum.

“Board of Directors, in its meeting scheduled on Wednesday, February 03, 2021, shall also consider routine financing/ re-financing strategies and any consequent raising of capital through various instruments including debentures, bonds, loans etc. either denominated in Indian rupees or in foreign currency and of suitable tenor and characteristics, subject to applicable regulatory/ statutory approval,” said the telco in a regulatory filing on Sunday evening.

February 3 is also the day when the telco will announce its October -December results. Shares of Airtel were trading at Rs 554.85, up by 0.30% on BSE in morning hours of Monday.

Airtel’s fund raise plans comes at a time when the telco recently announced that it can commercially launch 5G services, taking battle over next generation services headlong with rival Reliance Jio.

But for this, the operator may need additional spectrum during the upcoming airwave auction.

Over and above these expenses, Airtel also owes the government almost Rs 26,000 crore as adjusted gross revenue (AGR) dues.

Infact, rival Vodafone Idea (Vi) is also expected to close in on its fund raising plans of Rs 25,000 crore soon. The investments for Vi too will go in AGR dues and improving network capacity.