Bharti Airtel board to consider raising funds on Friday

Telecom major Bharti Airtel on Monday stated that its board will meet on Friday to consider and evaluate a fundraising proposal.

“…Board of Directors of the Company is scheduled to be held on Friday, January 28, 2022 to, inter-alia, consider and evaluate the proposal for issuance of equity shares through preferential issue (other than to Promoter I Promoter Group) subject to all such regulatory/ statutory approvals as may be required including the approval of shareholders of the Company. consider and evaluate the proposal for issuance of equity shares through preferential issue (other than to Promoter I Promoter Group) subject to all such regulatory/ statutory approvals as may be required including the approval of shareholders of the Company,” the telco major told the stock exchange today.

The announcement comes amid the upcoming proposed second 5G spectrum auction exercise by the government in three months. Last October the company raised around Rs 21,000 crore through a rights issue and has already garnered over Rs 5200 crore from the first round of payment.
Recently, Bharti Airtel had also stated that it will not avail the option of conversion of the interest on deferred spectrum and AGR dues to equity, under the reforms package.

The telecom sector got a shot in the arm with the government last year approving a blockbuster relief package that includes a four-year break for companies from paying statutory dues, permission to share scarce airwaves, change in the definition of revenue on which levies are paid and 100 per cent foreign investment through the automatic route.

The reforms measures, aimed at providing relief to telecom service providers such as Vodafone Idea that have to pay thousands of crores in unprovisioned past statutory dues, also included the scrapping of Spectrum Usage Charge (SUC) for airwaves acquired in future spectrum auctions.

Shares of Bharti Airtel on Monday closed at Rs 689.60 apiece on BSE. BusinessToday