Bharti Airtel prepared for an upcoming 5G spectrum auction and beefed up its network, with its board approving a plan to raise INR210 billion ($2.9 billion) via a rights issue to existing shareholders.
In a filing with the Bombay Stock Exchange, Airtel explained it will issue equity shares with a face value of INR5 each to eligible equity shareholders.
Livemint reported chairman Sunil Mittal said during an investors’ call he expects ARPU to climb to INR200 this fiscal year (ending 31 March 2022), noting it has no plan to sell off a stake in the company. Singtel holds a near 32 per cent interest.
Bharti Airtel issued shares worth $2 billion in January 2020 to cover fees demanded by the government. At the time, Fitch Ratings stated the equity was sufficient to offset an increase in debt stemming from a long-running dispute with the government over adjusted gross revenue (AGR) fees.
The company’s fortunes in India have improved in recent quarters, with a net profit hitting INR2.84 billion in fiscal Q1 (ending 30 June) and revenue up 21.2 per cent year-on-year to INR268.5 billion.Subscribe to our daily newsletter Back