Airtel board to meet next week to consider raising capital

In the aftermath of a loss posted in the second quarter, telecom major Bharti Airtel on Friday said its board will meet on December 4 to consider raising capital through debt or equity.

A meeting of the Board of Directors of the company is scheduled to be held on Wednesday, December 4 to consider and evaluate any and all proposals for raising of funds," Airtel said in a regulatory filing.

The funds can be raised either by issuance of equity shares or bonds, including foreign currency convertible bonds, debentures or non-convertible debt instruments, along with warrants and convertible debentures, securities and any other equity-based instruments, the statement said.

The option of qualified institutions placement (QIP) or rights issue may also be exlpored, it added.

Airtel incurred a Rs 23,045 crore loss in the quarter ended September 30, as against a a net profit of Rs 118 crore in the same period a year ago, due to provisions made for an unfavourable court verdict.

Airtel's revenue from mobile services in India was Rs 10,811 crore in the July-September quarter, up from Rs 10,724 crore in the previous April-June quarter.

The company's net loss exceeded its consolidated revenue from operations, which grew 4.9 per cent year on year to Rs 21,131 crore in the September quarter.

Airtel's results came three weeks after the apex court upheld the government's broader definition of revenue, on which it calculates levies on telecom operators, dealing a Rs 92,000 crore blow to the telecom industry, which is already burdened with falling tariffs and mounting debt.