Bharti Airtel board has decided to delay calling the remaining approximately Rs 15,000 crore from its rights issue, citing sufficient cash reserves for its current needs. The company explained that, given its strong financial position and immediate funding requirements being met, it is prudent to postpone requesting the balance on partly paid-up shares.
The board noted that it will only call for the remaining funds when significant capital expenditures or leverage considerations arise. They assured that shareholders will receive notice whenever such a call is made.
Airtel emphasized its robust balance sheet, supported by strong free operating cash flows, and anticipated a moderation in capital expenditures in the near term. The decision followed a review of Airtel’s financial position, business environment, and industry landscape.
Previously, Airtel raised approximately Rs 5,247 crore in the first tranche of its Rs 21,000 crore rights issue over two years ago. The company has the option to access the remaining 75% of the funds through additional calls within 36 months of the issue’s closure.
