Bharti Airtel says it won't opt for equity conversion on interest in deferred payment

The telecom major confirmed that it will not avail the option of conversion of the interest on deferred spectrum and AGR dues into equity.

The telecom major has confirmed to the Department of Telecommunications (DoT) that it will not avail the option of conversion of the interest on deferred spectrum and AGR dues into equity.

In October last year, Bharti Airtel had announced the deferment of the payment of spectrum auction installments due up to four years. The company also deferred the AGR-related dues by four years.

Last year, the government approved a relief package for the telecom sector that includes a moratorium or deferment of up to four years in annual payments which runs from FY22-23 through FY25-26. But the telecom companies will have to pay interest during the moratorium period.

Further, 90 days were given to telcos to exercise a one-time option of converting the interest which accrues due to deferred payments into government equity.

Bharti Airtel is a global communications solutions provider with over 480 Mn customers in 17 countries across South Asia and Africa. Airtel is India's largest integrated communications solutions provider and the second largest mobile operator in Africa.

On a consolidated basis, Bharti Airtel posted a net profit of Rs 1,134 crore in Q2 FY22 as against a net loss of Rs 763.2 crore in Q2 FY21. It posted quarterly revenues of Rs 28,326 crore, rising 13% YoY on a reported basis.

Shares of Bharti Airtel were up 0.39% at Rs 713.

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