Bharti Airtel is planning to raise capital very soon. The company’s board is set to meet on August 29, 2021. The board meeting will be focused on discussing fund raising plans. Bharti Airtel can raise funds through equity or debt linked instruments which will strengthen its balance sheet. The telco might be raising capital for paying off the upcoming dues in the first half of 2022, which includes spectrum and adjusted gross revenue (AGR) dues totalling Rs 13,000 crore.
Bharti Airtel Fund Raising Will Add to Woes of Vodafone Idea
Bharti Airtel’s board will meet on August 29, 2021, for discussing fund raising. Post fund raising, Airtel’s balance sheet will become very strong to the likes of Reliance Jio, and this will add to the woes of Vodafone Idea (Vi). It is worth remembering that even Vodafone Idea has been trying to raise capital for a long time but has been unsuccessful in doing so.
In a notice to the stock exchanges on Wednesday, Bharti Airtel said that it is planning to hold a meeting for the board of directors on Sunday, August 29, 2021, where the company will discuss raising funds through different mediums as deemed appropriate by the board.
Despite the good results for June 2021 and fund raising talks, Bharti Airtel’s stock has slipped more than 2% on Thursday morning. The telco’s stock opened at Rs 610 and fell down to as low as Rs 591.20. But at the time of this writing, the company’s stock is trading at Rs 599.20, which is 2.16% down.
The company’s already profitable and wouldn’t have required the fund raising exercise if it didn’t have thousands of crores in statuary payments coming soon. It is worth noting that Bharti Airtel has already raised $12 billion in the last 24 months. At the same time, Bharti Airtel will also require money for rolling out 5G networks next year.