‘Airtel may not seek access to rest of Rs 15,000 crore rights issue proceeds soon’

Bharti Airtel will not make any additional calls to access a portion of its near Rs 15,000 crore remaining rights issue proceeds anytime soon amid rising free cash flow (FCF) generation and a likely fall in capex spends in FY25 with its nationwide 5G roll out almost complete, analysts said, quoting the telco’s senior management.

The Sunil Mittal-led telco had raised around Rs 5,247 crore in the first tranche of its Rs 21,000-crore rights issue proceeds some two years ago. Accordingly, it has the option to tap the balance 75% via additional calls within 36 months of the issue close.

But analysts, who participated in Airtel’s fiscal third quarter earnings call last week, said the telco has ruled out additional calls as its cash generation remains robust coupled with the fact that it recently prepaid a substantial chunk of past spectrum dues and also has no need for large spectrum-related investments for the next 3-4 years.