Airtel Rings the Change: Seeks Equity Signal on Government Dues

Bharti Airtel has now formally approached the Department of Telecommunications (DoT) to convert over ₹70,000 crore of government dues, including ₹40,000 crore of adjusted gross revenue (AGR) dues, into equity, after a similar move by Vodafone Idea recently. This comes after the government dropped a proposal of waiving 50% interest and penalty on AGR dues, with which Airtel has approached the regulator requesting a parity of treatment by the regulator. If approved, the equity swap would mean the government taking a 3-6% holding in Airtel, a financially well-placed market-cap firm with a robust financial track record, as opposed to Vodafone Idea where the government holding hasn't been yielding returns. The move would allow Airtel to save on costs, reduce its debt burden, and invest the amount in expanding 5G networks and network upgrades, as payment for outstanding dues is set to begin in 2026.

 

Sources: Economic Times, Times of India, Financial Express