Bharti Airtel prepays ₹8,815 cr towards deferred liabilities for 2015 spectrum
Premium- Airtel shares picked momentum on stock exchanges following prepayment of a portion of deferred liabilities for spectrum.
Telecom service provider, Bharti Airtel on Friday announced the prepayment of ₹8,815 crore to the Department of Telecom (Government of India) of deferred liabilities related to spectrum acquired in the auction of the year 2015.
Airtel shares picked momentum on stock exchanges following prepayment of a portion of deferred liabilities for spectrum. On BSE, at around 09.51 am, Airtel shares were trading at Rs712.25 apiece up by 0.85%. The shares were near the day's high of ₹713.15 apiece.
"The prepayment is for instalments due in FY 2027 and FY 2028," Airtel said in a statement.
Further, Airtel said that it "continues to focus on financial flexibility via its capital structure including optimising cost of financing and capitalising on all opportunities of significant interest saves like this prepayment."
Over the past four months, the Sunil Mittal-led company has cleared a whopping ₹24,334 crore of its deferred spectrum liabilities much ahead of scheduled maturities.
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These liabilities had an interest rate of 10% and have been paid off through a combination of strong free cash generated by the business, equity proceeds, and significantly lower cost debt of a similar tenor.
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