Airtel Plans To Raise Rs. 21, 500 Crore To Pay Dues: Report

Telecom operator Airtel will soon be raising funds to sustain in the market. In order to do that, the company needs approval from its board. Both Airtel and Vodafone Idea have witnessed the worst hit in the industry. So this move by Airtel seems a step towards fund increasing liabilities.

In a new stock exchange filing by the Airtel has noted that it will discuss fundraising matters in its board meeting on December 4th. "We wish to inform you that a meeting of the Board of Directors of the Company is scheduled to be held on Wednesday, December 04, 2019 to, inter-alia, consider and evaluate any and all proposals for raising of funds either by issuance of equity shares, and or bonds including foreign currency convertible bonds/ debentures/ non-convertible debt instruments," the company told the BSE. Apart from that, the company also plans to funds via qualified institutions placement, the filing added.

However, the company may require approval from the regulatory and shareholders before taking any decision on that front. While, Airtel has announced the exact amount of money it is planning to raise. A report by PTI suggests that the company is reportedly planning to raise $3 billion (around Rs. 21,500 crore). According to the report, the company will raise money to pay AGR to the government. But there are chances that it will partially invest in the network.

"The company is planning to raise $3 billion in this round. Part of it will be used to pay back AGR liability," a banking source was quoted by the news agency. For the unaware, Airtel has posted a loss of Rs. 23,045 crore in the second quarter of this financial year, due to Supreme Court ruling on AGR dues. On top of that, as per the government calculation Airtel has to pay a debt of Rs. 35, 586 crore, out of which Rs. 21, 882 crore is only a license fee.