Financial Insights

Airtel prepays Rs 8,815 crores towards its spectrum dues linked to 2015 auction

Bharti Airtel has paid Rs 8,815 crores towards its spectrum dues to the department of Telecom, clearing a significant amount of its debt. These spectrum dues were linked to a 2015 auction.

These payments were set to be due in FY27 and FY28 as this prepayment marks Rs 24,334 crores of spectrum dues deferred liabilities cleared in the last 4 months by the company. These liabilities carry an interest rate of 10% and have been paid off through a combination of free cash reserves, equity proceeds and a lower cost debt of the same tenor.

In other news, the company is set to buy the 4.7% stake in Indus Towers from Vodafone Group Plc in a deal worth nearly Rs 2,388 crores. Currently Vodafone holds around 28% in Indus Towers while Airtel owns 42%. Indus Towers caters to all wireless telecom service providers in India.

Highlight by Aman Agarwal.

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