Info-tech

Bharti Airtel seeks to raise $3 billion to fund AGR dues

Rajesh Kurup Mumbai | Updated on November 30, 2019 Published on November 30, 2019

Bharti Airtel is planning to raise about $3 billion (₹21,000 crore) through various modes, mainly to pay Adjusted Gross Revenue (AGR) charges, for which the operator has convened a board meeting on Wednesday.

The board will evaluate all modes of fund raising such as issuance of equity shares, bonds including foreign currency convertible bonds, equity-based instruments, qualified institutions placement or rights issue or a combination of these, said Bharti Airtel in a stock exchange filing.

“The plan is to seek approvals to raise $3 billion, which along with internal accruals would be needed to pay AGR dues. The operator has put investment bankers also on alert,” a banking source, briefed on the development, told BusinessLine. When contacted, a Bharti Airtel spokesperson declined to comment.

For the second quarter ended September 30, Bharti Airtel had posted a net loss of ₹23,045 crore, its highest-ever net 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.

The operators – Airtel, Vodafone Idea and Reliance Jio Infocomm – have also announced plans to hike tariffs from December, in an attempt to mitigate the “acute financial stress” in the sector.

Published on November 30, 2019
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.