Bharti Airtel on Monday announced that it has strengthened its financial position by prepaying Rs 8,024 crores to the Department of Telecom (DoT), settling part of its deferred liabilities related to spectrum acquired in the 2015 auction, according to the company's announcement.
Airtel Optimizing Capital Structure
The move to make a substantial prepayment on the spectrum acquisition liabilities is aimed at leveraging the lower-cost financing options available to Airtel. The instalments carried an interest rate of 10 percent, prompting the company to seize the opportunity for prepayment. Airtel's decision aligns with its strategy to optimize its capital structure and reduce interest expenses.
Recent Expansion of Stake in Lavelle Networks
In a recent regulatory filing, Bharti Airtel revealed that they have acquired an additional 20.6 percent stake in Lavelle Networks, a Bengaluru-based start-up specializing in software-defined networking. With this acquisition, Airtel's total stake in the start-up now stands at 45.6 percent. Initially, the telecom operator had acquired a 25 percent equity stake in Lavelle Networks in January 2022.