CORPORATE
Airtel seeks conversion of its spectrum and AGR dues into equity
- IBJ Bureau
- Apr 25, 2025
Bharti Airtel has formally approached the Department of Telecommunications (DoT), seeking conversion of its deferred government dues into equity. This request is made under the provisions of the 2021 telecom reforms package, which was introduced to ease the financial strain on telecom companies.
The move comes amid intensifying competition, the pressure of 5G rollout investments and the backdrop of the government increasing its stake in Vodafone Idea to over 49 per cent following a similar equity conversion.
According to senior government officials, Airtel is pressing for equal treatment in the implementation of the telecom reforms. The 2021 package allows telecom companies to defer spectrum and adjusted gross revenue (AGR) dues and opt for equity conversion of interest on these dues.
While Vodafone Idea has already taken advantage of this clause, Airtel had previously chosen not to. However, the telco now believes that the current situation justifies a change in stance. A senior official confirmed that each application for equity conversion will be reviewed on a case-by-case basis.
Bharti Airtel has been aggressively reducing its debt burden. Last month, the company had prepaid Rs 5,985 crore in high-cost liabilities related to the 2024 spectrum auctions. This significantly reduced its outstanding spectrum-related debt to around Rs 52,000 crore and brought down the average cost of debt to 7.22 per cent.
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