Bharti Airtel to call for nearly ₹15,741 crore tranche of rights issue

Board approves changes to SHA with Singtel; Gopal Vittal becomes executive vice chairman, Shashwat Sharma becomes MD and CEO from January 1

India’s second-largest carrier Bharti Airtel will call in March 2026 the final tranche of about ₹15,741 crore from its 2021 rights issue of ₹21,000 crore, proceeds from which will be used towards retiring majority of non-government-related debt.

 

The Sunil Mittal-promoted telco’s board approved the “first and final call” on 392.3 million shares at ₹401.25 per share that were issued on a rights basis totalling ₹20,987.4 crore offered back in September 2021, which will include a premium of ₹397.5 per share.

 

“The proceeds from the call on the partly paid-up equity shares will be utilised primarily for pre-payment or repayment of borrowings, including accrued interest, and general corporate purposes,” the company said in a statement to BSE on Thursday.

 

 

“Following the pre/repayment of the borrowings and along with its organic cash generation, the company’s India operations are expected to become effectively net debt-free in the near term except for DoT (department of telecommunications) liabilities and Finance Lease Obligations, thereby further strengthening its balance sheet,” Airtel added.

 

As of September 2025, the company’s net debt, including lease obligations, stood at ₹1.94 trillion, of which long-term debt was ₹20,194 crore and short-term was ₹26,385 crore. Deferred payment liability, which relates to payments to be made for spectrum bought in auctions, was ₹93,474 crore. Lease obligations were ₹68,062 crore. Cash, investments, and receivables were nearly ₹13,430 crore.

 

The record date has been kept as February 6, 2026 for determining shareholders who are liable to pay the money, and the call period will begin on March 2 and end on March 16, 2026.

 

Airtel had raised ₹5,247 crore in the first tranche of the rights issue in October 2021. The company has since refrained from calling the rights issue as it continued to have sufficient cash reserves on the back of strong free cash flows and moderation in capex spending. While Airtel’s capex on 5G networks had tapered, it intends to raise spending on data centre and home broadband segments.

 

Airtel & Singtel amend shareholder agreement

 

In a separate announcement, Airtel said that its promoter Bharti Telecom Limited and Singapore’s Singtel, which is part of the promoter group, mutually agreed to amend the existing shareholders’ agreement to better align with the business requirements and contemporary governance standards. However, the changes would not have an impact on the management or control. Bharti Telecom Ltd held 40.47 per cent while Pastel Ltd (Singtel’s unit) held 7.49 per cent of Airtel as of December 18, 2025.

 

As per the statement issued to the BSE on Thursday, “Singtel has relinquished several key reserved rights”. The statement added that other changes included removing redundancy and making necessary revisions for the sake of clarity and governance.

 

“The proposed changes reflect the evolving maturity of the relationship and a shared commitment to focus on Airtel’s growth while respecting the governance obligations of both parties,” the statement added.

 

“It may be noted that these amendments are intended to simplify and rationalise the existing arrangement in line with best governance practices and do not confer any new rights on either party,” the company said.

 

The Singapore-headquartered telecom operator has lowered its holding in Airtel over 2025 to pare debt, as part of its active capital management approach to optimise its asset portfolio and drive sustainable shareholder returns. The company has been working with Bharti Enterprises, parent of Bharti Telecom, to equalise its effective stake in Airtel over the medium term.

 

Airtel board okays key management changes effective Jan 1

 

Airtel’s board also approved elevation of Gopal Vittal as executive vice chairman and Shashwat Sharma’s elevation to managing director and chief executive officer (MD&CEO) from January 1, 2026.

 

Sharma was appointed as the CEO-designate in October 2024 and has spent time working alongside Vittal in preparation for the role. He was the chief operating officer before his elevation. Sharma will report to Vittal.

 

Soumen Ray, the chief financial officer (CFO) for four years, will be moved up to group chief financial officer from January 1. Ray will report to Vittal. Akhil Garg, currently financial controller, will take over as CFO from January 1. Garg has been with Airtel for nearly 12 years and has held multiple roles leading several business projects, including the Hexacom IPO. Garg will report to Sharma and Ray. 

Soumen Ray will be the group finance chief of Bharti Airtel

 

Vittal will also be appointed to the board of Airtel Africa Plc as the Bharti nominee director to provide strategic guidance, the company had said in October 2024. From January 1, besides oversight of the companies, Vittal will also be responsible for driving group synergies in the areas of digital and technology, network strategy, procurement, and talent. The top executive will also focus on group strategy and future-proofing the organisation for the next evolution of its development.