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Business News/ Companies / News/  Airtel says it will pay interest on deferred dues, but not issue equity to govt
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Airtel says it will pay interest on deferred dues, but not issue equity to govt

Bharti Airtel said it has informed the telecom department DoT about its decision.

On Friday, Airtel shares were down 0.93% in noon deals at ₹703.80 on NSE. (MINT_PRINT)Premium
On Friday, Airtel shares were down 0.93% in noon deals at 703.80 on NSE. (MINT_PRINT)

Telecom giant Bharti Airtel today informed the stock exchanges that it will not avail the option of conversion of the interest on deferred spectrum and AGR dues into equity, under the reforms package.

Airtel said it has informed the Telecom Department DoT about its decision.

"... We wish to inform you that the company has confirmed to DoT (Department of Telecom) that it will not avail the option of conversion of the interest on deferred spectrum and AGR (Adjusted Gross Revenue) dues into equity," Airtel said in a BSE filing.

The decision comes in the wake of reforms package announced by the government in September last year, which provided much-needed relief for the telecom sector, and significantly boosted investor confidence in the industry while simplifying the licence framework.

The relief package for the telecom sector 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% foreign investment through the automatic route.

Airtel has also recently withdrew its plans to change its corporate structure aimed at housing all digital assets under the listed entity, saying it is well placed with a strong balance sheet and 5G-ready network to invest aggressively in growth opportunities in India.

The move was seen in in sync with the carrier’s financial position, which has improved drastically over the past few quarters.

Airtel had reported a net profit of 1,134 crore for the quarter ending 30 September 2021 as against a loss of 763 crore in the September quarter of 2020.

Profit in the September quarter was 300% more than 283 crore in the June quarter.

Last month, Airtel paid up 15,519 crore to the government as pre-payment of the entire liability of spectrum it acquired in 2014 auctions, when it acquired 128.4 MHz spectrum for 19,051 crore.

 

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Published: 07 Jan 2022, 02:17 PM IST
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