Press "Enter" to skip to content

Bharti Airtel board approves $3-billion fund-raise

The Bharti Airtel board on Wednesday approved raising $3 billion (about ₹21,000 crore) through various debt and equity instruments, mainly to fund its adjusted gross revenue (AGR) dues.

It will raise $2 billion through a qualified institutional placement (QIP), public or private offerings of shares, debentures and warrants, among others. It may opt for one or more of these instruments, or a combination, the company said in a BSE filing.

Another $1 billion will be raised either through foreign currency convertible bonds (FCCBs) or debentures, among others, it added.

On November 30, banking sources had told BusinessLine that Airtel was planning to raise $3 billion, which, along with internal accruals, would be needed to pay AGR dues.

For the second quarter ended September 30, Airtel had posted a net loss of ₹23,045 crore, its highest-ever loss, mainly on account of provisioning for AGR payouts. Rival Vodafone Idea also recorded a loss of ₹50,921 crore, the highest-ever loss for a corporate in India, during the same quarter.

Airtel has provided for an additional charge totalling ₹28,450 crore. The same for Vodafone Idea stood at ₹25,677.9 crore.

In an attempt to mitigate the “acute financial stress” in the sector, private operators Bharti Airtel, Vodafone Idea and Reliance Jio Infocomm have also announced tariffs hikes from December.

Source: The Hindu