BAJAJ BROKING
Bharti Airtel prepaid ₹7,904 crore for spectrum dues from 2012 and 2015 auctions, saving on high interest rates of 9.75% and 10%. The company aims to minimise financing costs, improve cash flows, and support its extensive 5G rollout, which demands substantial capex.
Bharti Airtel announced it had prepaid ₹7,904 crore to the Department of Telecommunications (DoT) to clear deferred liabilities for spectrum acquired in the 2012 and 2015 auctions.
This strategic move was aimed at saving interest costs, with the respective interest rates for these dues being 9.75% and 10%.
Explore:Bharti Airtel Share Price
In FY24, Airtel prepaid a total of ₹16,349 crore towards high-cost deferred spectrum liabilities from 2015. Previously, Airtel had acquired spectrum worth ₹29,130 crore in the 2015 auctions, with an upfront payment of ₹7,833 crore.
Additional prepayments included ₹8,815 crore in March 2022 and ₹8,024 crore in July 2022. In January 2024, Airtel prepaid another ₹8,325 crore.
The company has aimed to minimise financing costs, improve cash flows, and support their extensive 5G rollout, which has demanded substantial capital expenditure (capex).
Airtel’s proactive prepayments are part of a broader financial strategy to enhance cash flow management and reduce interest expenses. Analysts estimate that Airtel generates an annual free cash flow of ₹40,800 crore, despite significant capex on 5G infrastructure.
Airtel’s prepayments include dues from acquisitions of Videocon's spectrum assets in 2016 and Telenor's India unit in 2018, which were initially part of the 2G auction in 2012.
The government’s telecom relief package, introduced in September 2021, offered a four-year moratorium on spectrum and adjusted gross revenue (AGR) payments, providing ₹48,000 crore in cash flow relief.
This moratorium, coupled with reduced bank guarantees and the option to convert statutory dues into equity, has been pivotal in Airtel’s financial manoeuvres.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Share Market Today | Gift Nifty Signals 100-Point Gap Down, Nifty to Consolidate
06 Sep, 2024 | 4 Min. read
KEC International Secures ₹1,423 Cr Transmission Line Order in Saudi Arabia
06 Sep, 2024 | 1 Min. read
Ashoka Buildcon’s Viva Highways Monetises Pune Land for ₹453 Crore
06 Sep, 2024 | 2 Min. read
Peak Partners To Sell 11% Stake in Indigo Paints via Block Deal
06 Sep, 2024 | 2 Min. read
US Initial Jobless Claims Drop to 227,000 in August.
06 Sep, 2024 | 1 Min. read
Commodities Market Today | WTI Crude Steady at $69.18, Gold Rises 0.8% to $2,546
06 Sep, 2024 | 1 Min. read
Gold Rate Today | Gold Rises 0.8% to $2,546, Silver Gains 2% to $29.14
06 Sep, 2024 | 2 Min. read
Vodafone Idea Share Price Falls 11% After Goldman Sachs Report
06 Sep, 2024 | 1 Min. read
Suzlon Energy Share Price Rises After Corporate Office Sale
06 Sep, 2024 | 1 Min. read
Why is the Stock Market Down Today? Key Factors Explained
06 Sep, 2024 | 1 Min. read
Sona BLW Precision Forgings Plans ₹2,400 Crore QIP at ₹675-700 per Share
05 Sep, 2024 | 1 Min. read
Commodities Market Today | Crude Oil Drops, Brent Hits Low; Gold and Silver Rise
05 Sep, 2024 | 1 Min. read
Analysis to Become a Pro Investor
28 Dec, 2023 | 4 Min. read
Women In Real Estate Investing (Investree)
28 Dec, 2023 | 5 Min. read
How To Check Prudent Corporate Advisory IPO Allotment Status
27 Dec, 2023 | 3 Min. read
How To Boost Credit Score? – Steps to Improve Creditworthiness
27 Dec, 2023 | 4 Min. read
Advantages and Disadvantages of Opening Multiple Demat Accounts
26 Dec, 2023 | 4 Min. read
7th CPC LTC: Leave Travel Concession Rules for Central Government Employees
26 Dec, 2023 | 4 Min. read
7th Pay Commission: House Building Advance (HBA) Interest Rate FY 2023-24
26 Dec, 2023 | 5 Min. read
The Future of Trading: Exploring Bajaj Broking’s Demat Features
26 Dec, 2023 | 6 Min. read
7th Central Pay Commission Cpc Fitment Table
23 Dec, 2023 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading