Telecom giant Bharti Airtel’s Board of Directors will be meeting on 29th August 2021 to inter-alia consider various capital raising options through equity or equity-linked debt instruments or any combination thereof. The other combinations may include rights issues, qualified institutions placement, preferential issue, convertible instruments issued domestically or foreign currency convertible bonds or warrants on a preferential or marketed basis.
Airtel’s board will also consider straight long-dated debt in rupee or foreign currency or any other mode including any combination thereof as the Board may deem appropriate.
“Further to our previous communication dated August 25, 2021, we wish to inform you that pursuant to Regulation 29(1 )(d) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a meeting of the Board of Directors of the Company is scheduled on Sunday, August 29, 2021, to inter-alia consider various capital raising options through equity or equity linked debt instruments or any combination thereof including through rights issue, qualified institutions placement, preferential issue, convertible instruments issued domestically or foreign currency convertible bonds, or warrants on a preferential or marketed basis, or straight long dated debt in rupee or foreign currency or any other mode including any combination thereof, as the Board may deem appropriate,” said Bharti Airtel in a regulatory filing.
Airtel had earlier this year considered raising of capital through various instruments like debentures, bonds, loans etc through Indian rupees or in foreign currency. The company set plans afoot to raise capital through routine financing and re-financing strategies.Â
Why sudden fund raise? 5G auction is NOT coming for at least 6 months. Last time, if I am not wrong, Airtel raised funds 3 months before auctions only.
Is Airtel planning to buy the extra spectrum from VoId, which they are going to return back to Govt?
Spectrum is not the only thing that needs capital investment. Airtel needs to strengthen its fiber backbone to be able to support the future 5G data capacity, increase the tower density as future 5G will have higher frequency bands with lower coverage radius. They need cash to keep launching more and more LEO satellites to have the entire constellation in place by mid 2022 for the one web satellite internet launch. Telecom needs a constant investment for the company to remain relevant, otherwise you end up like Vodafone Idea.